Zee Ent back on the radar

Zee Entertainment is one big star on the market. The stock has been on the rise since yesterday and today too it’s in the green. From its close of Rs.150.85, the stock opened at Rs.152.90 and went on to an intraday high at Rs.154.85. Its 52-week high is at Rs.299.50.

The stock has reacted positively to the news of it entering into an agreement to settle all merger related disputes with Sony India (Sony) and release each other from all document claims. This follows ZEE’s earlier move to withdraw its merger implementation application from the NCLT in April.

The settlement includes withdrawal of all claims for the $90 million in termination fee, litigation and other related costs.

This is exactly what Mr.SP Tulsian has been saying for a long time now and it happened the way he predicted. It has been a “Buy” from him for a long time now.

Mr.SP Tulsian’s views - Zee Entertainment is seen extremely bullish from here, with Sony merger termination dispute seen having mutually settled. Insiders are expecting company may be inducting Adani as JV partner in the company. Infact, existing promoter wants to have their stake to rise from 4% to 24% which is seen largely happened with recent allotment of QIP of Rs 2,000 cr of a stake of 14%, taking these FCCB Allottees as the Promoters' nominee. . Promoters were keen to have JV Partner as Adani and not SONY, which may be seen happening now, making stock move in an extremely bullish zone. With stock now out of F&O segment, has advantage of rising faster, with total float of about 25 cr shares, largely held by sub 6 lakh retail shareholders. Present M cap of sub Rs 17 k cr, with Rs2k cr in cash , held on FCCB Allotment is seen too low for a GEC Channel and can double from here, in the next 12 months, without considering any equity dilution.