Zee Entertainment Enterprises shares declined 2.57% to Rs 193.65, extending losses for the sixth day in a row.
Since its latest closing high of Rs 215.25 on February 17, 2023, the stock has lost 10.05% in five sessions.
Technically, the stock’s daily RSI (relative strength index) was 22.196. The RSI fluctuates between 0 and 100. Historically, the RSI has been considered overbought when it rises above 70 and oversold when it falls below 30.
The stock is trading below its 50-day, 100-day, and 200-day simple moving averages (SMAs), which are at 227.65, 245.81, and 243.87, respectively, on the daily chart.
The stock has declined by 25.01% in the last six months, while the benchmark Sensex has gained 0.94%.
In an exchange filing made late on Wednesday, the Essel Group-owned media company stated that the National Company Law Tribunal, Mumbai Bench (NCLT), has pronounced its order dated February 22, 2023, admitting the company to the corporate insolvency resolution process under the provisions of the Bankruptcy Code in the petition filed by IndusInd Bank against the company under the Insolvency and Bankruptcy Code, 2016.
According to media sources, IndusInd Bank has filed a default claim against the media firm for Rs 83.08 crore ($10.04 million). According to reports, Zee is a signatory to the debt service reserve account (DSRA) guarantee arrangement inked up with the private bank for the term loan facility given to another Essel Group company, Siti Networks.
According to reports, the NCLT has chosen temporary resolution professional Sanjay Kumar Jhalani.
According to recent media reports, the corporation has petitioned the National Company Law Appellate Tribunal (NCLAT) for review of the bankruptcy court’s judgement authorising the filing of insolvency proceedings against the media company. This is an attempt to rescue the previously proposed merger with Columbia Max Entertainment (CME), as bankruptcy regulations prohibit any transaction until bankruptcy proceedings are resolved, according to the reports.
Zee Entertainment Enterprises (ZEEL) is a media and entertainment corporation that produces and distributes entertainment material to a wide range of people. It is present in the television, film, music, digital, live entertainment, and theatre industries both in India and abroad.
The company’s total net profit fell 91.9% to Rs 24.31 crore in Q3 FY23 from Rs 298.73 crore in Q3 FY22. Income from operations fell marginally to Rs 2,111.18 crore in the quarter ended 31 December 2022, from Rs 2,112.64 crore the previous year.