Zee Shares Locked In Lower Circuit Today: Beleaguered media firm Zee Entertainment Limited shares cracked 14.3 per cent to Rs 165.5 apiece on the BSE in today’s trade on February 21 after Bloomberg reported that Sebi has found that about $241 million might have been diverted from the company.
As part of its investigation into Zee founders, SEBI has disclosed that approximately Rs 2,000 crore ($241 million) may have been redirected from the company. This amount is nearly ten times more than SEBI investigators initially estimated, the report added.
Moreover, the regulator has also summoned Zee founders Subhash Chandra, his son Punit Goenka, and certain board members of the embattled media firm, to provide explanations, according to the Bloomberg report.
However, Zee has refuted media reports that claimed a $240 million, or Rs 2,000 crore ‘accounting hole’ and termed it incorrect and false.
“Reports and rumours pertaining to accounting issues in company are incorrect and false. We are in process of providing all comments requested by SEBI and have extended complete co-operation on all aspects,” news agency Reuters quoted the company as saying.
Zee shares have seen a massive downfall recently after the collapse of its merger with Sony Group Corp’s India unit. The stock has fallen 30 per cent year-to-date (YTD).
On Tuesday evening, Zee Entertainment Enterprises clarified on reports by The Economic Times about renewed talks with Sony to revive the scrapped merger deal. Zee in a statement said that the report was “incorrect” and that the company was “not involved in any negotiations”. The stock rose over 10 per cent on the news on Tuesday.
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