In a favourable development, a surge of 15% in shares of Zee Entertainment Enterprises (ZEEL) occurred, propelling them to attain a more than six-month high of Rs 278.55 within a single day. This surge was instigated by investor confidence, which was influenced by the endorsement of the proposed merger between ZEEL and Sony Pictures by the National Company Law Tribunal (NCLT).
Although the media conglomerate had initially announced the merger deal in 2021, unexpected delays ensued due to Zee’s engagements in legal disputes with multiple lenders and the Securities and Exchange Board of India (SEBI), the regulatory body for the market.
The NCLT’s approval triggered a rally of relief in the stock, signifying a significant stride in Zee’s strategic merger blueprint. The NCLT had formerly reserved its verdict on the merger deal in July. Throughout a span of several months, the tribunal meticulously scrutinized the matter, confronting challenges including a minimum of four applications that contested the merger.
Previously, the merger had procured no-objection letters from the stock exchanges and garnered endorsements from both the Competition Commission of India and the shareholders of the company.