September 18, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

ZEE Entertainment institutional investors seek removal of MD Punit Goenka; call for EGM today

Punit Goenka is the son of Essel Group Chairman Emeritus Subhash Chandra.
(Image: REUTERS)

Zee Entertainment Enterprises (ZEE) major institutional investors Invesco Developing Markets Fund and its subsidiary OFI Global China Fund LLC have called for the removal of Managing Director Punit Goenka and two Independent Directors. Zee Entertainment Enterprises said in a stock exchange filing that Invesco and OFI Global have called for an Extraordinary General Meeting (EGM) on Tuesday. Invesco and OGI Global together hold a 17.88% stake in ZEE. The two institutional investors have further recommended appointing six independent directors to the board of the company. Punit Goenka is the son of Essel Group Chairman Emeritus Subhash Chandra.

Apart from Punit Goenka, Invesco and OFI Global have also sought the removal of Manish Chokhani and Ashok Kurien as Directors of the company. Both Chokhani and Kurien resigned from the Board of ZEE on Monday. The six independent directors recommended by Invesco include Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli, and Gaurav Mehta. 

Related News

“While we await the actual outcome of the meet, with promoters group holding only ~4% stake, it is likely that this resolution will go through. This move is likely to remove promoter led overhang on the stock, owing to past instances of inefficient allocation of capital, related party transaction, etc,” ICICI Direct said in a note. 

Invesco’s, formerly known as Invesco Oppenheimer Developing Markets Fund, move comes after advisory firm Institutional Investors Advisory Services (IiAS) highlighted corporate governance concerns in the company. Investors have reacted positively to the development. On BSE, Zee Entertainment Enterprises’ share price was up 22% trading at Rs 229.6 per share.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Share This :