Zee Entertainment has filed a suit before Bombay High Court, requesting Court to declare that the requisition notice sent to the Company by Invesco Developing Markets Fund and OFI Global China Fund LLC (shareholders of the Company) is illegal and invalid.

Promoters are holding less than 4% stake in the company, but want Punit Goenka to continue as MD & CEO. In response to said requisition, Manish Chokhani & Ashok Kurien have already resigned, as non-executive non-independent directors of the company.

With over 86% stake of Zee being held by FPIs, MFs, Global Funds and Insurance companies, not any of these investors will take risk of destroying their valuations, which already took a hit, couple of years back. It is also talked that 2 independent directors, infact are from camp of Promoter, who will sooner or later be removed as well.

Legal Pundits are also of the view that, High Court will ask Zee to move before NCLT first. This means, for next couple of months, we will see bitter legal battle being fought, with battery of eminent lawyers seen representing both sides, with multiple parties being seen impleaded.

Initial reaction- huge legal bills, fall in share price, volatility seen reacting to each development, on real time.

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