Zee Entertainment Enterprises share price gained over 2 percent at open on September 15 after Rare Enterprises and BofA Securities picked half a percent stake.
The firm bought 50 lakh equity shares in the company, representing 0.52 percent of total paid-up equity, at a price of Rs 220.44 per share on the NSE, the bulk deals data showed. The stake is valued at Rs 110.22 crore.
The stock was trading at Rs 270.85, up Rs 9.35, or 3.58 percent. It has touched a 52-week high of Rs 295.15. It has touched an intraday high of Rs 295.15 and an intraday low of Rs 262. It was trading with volumes of 4,235,668 shares, compared to its five day average of 1,693,108 shares, an increase of 150.17 percent.
It was trading with volumes of 2,081,554 shares, compared to its five day average of 1,693,108 shares, an increase of 22.94 percent.
Also, BofA Securities Europe SA acquired 48,65,513 equity shares of Zee at Rs 236.2 per share.
The concerns over corporate governance after key shareholders, Invesco Developing Markets Fund and OFI Global China Fund LLC demanded the removal of three directors, seems to have not affected the confidence of investors, as the stock rallied 40 percent to close at Rs 261.50 on the BSE, the highest level seen since February 2020.
Invesco and OFI Global China Fund LLC are the largest shareholders of Zee Entertainment Enterprises, together owning 17.88 percent stake in the company. They have demanded the removal of Goenka, Manish Chokhani and Ashok Kurien as directors of the firm, the company said in a regulatory filing on September 13. The company said Chokhani and Kurien had resigned with immediate effect.
Promoters currently held 3.99 percent stake in the company, while mutual funds including Nippon Life, Mirae Asset, Kotak MF and ICICI Prudential have 8.1 percent shareholding in the company as of June 2021, and insurance companies have 10 percent stake.
Amongst them, foreign portfolio investors are the largest shareholders with 57.46 percent stake including Amansa Holdings, HSBC, Vangyard International, Government Pension Fund Global and City of New York Group Trust.