Large Bull Rakesh Jhunjhunwala’s Uncommon Enterprise current funding in Zee Leisure bought him return of over 61 per cent in simply six days of his funding. Jhunjhunwala earned over Rs 62 crore. Few days again, on September 14, Uncommon Enterprises owned by Jhunjhunwala had purchased 5 million fairness shares of ZEEL, value Rs 110 crore, at a worth of Rs 220.44 per share by bulk deal transactions on NSE. Primarily based on present worth, the funding is now value Rs 177.67 crore, up 61 per cent or Rs 67.45 crore over the acquisition worth. Together with Uncommon Enterprise, BofA Securities Europe SA bought 4.86 million shares at a mean worth of Rs 236.2 apiece the identical day.
On Wednesday, the Board of Administrators of ZEEL unanimously offered an in-principle approval for the merger between Sony Footage Networks India (SPNI) & ZEEL. “The board has evaluated the merger not solely on monetary parameters, but additionally on the strategic worth which Sony brings to the desk. It has additionally concluded that the merger might be in the most effective curiosity of all of the shareholders & stakeholders and is according to ZEEL’s technique of attaining larger progress and profitability as a number one media & leisure firm throughout South Asia,” ZEEL stated in an announcement.
“Within the merged entity Sony will maintain 53 per cent and Zeel will maintain 47 per cent of whole shareholding, so Sony Footage might be holding a majority stake within the merged entity. Sony Footage may also infuse $1.57 billion (₹11,000 crores) into the merged firm. Punit Goenka, who’s managing director & chief govt officer of Zeel will proceed to stay managing director & chief govt officer of the merged entity. We advocate traders to be cautious as Zee Leisure Enterprises Ltd rose by 78 per cent from 170 to 303 within the final one month and as of now valuations will not be disclosed by Zeel,” Yash Gupta, fairness analysis analyst, Angel Broking stated.
Shares of Zee Leisure Enterprises Restricted on Wednesday zoomed 30 per cent after announcement of a merger with Sony Footage. The inventory jumped 31.86 per cent to shut at Rs 337.10 on the BSE. Through the day, it rallied 39 per cent to its 52-week excessive of Rs 355.40. On the NSE, it zoomed 30.50 per cent to shut at Rs 333.70. The corporate’s market valuation additionally jumped Rs 7,823.98 crore to Rs 32,378.98 crore on the BSE.
“Sony has additionally agreed to switch sure stake to ZEEL promoters to take care of their stake at 4 per cent as non-compete charges, and ZEEL promoters can have the choice to extend their stake as much as 20 per cent. ZEEL has not disclosed a lot on merger price synergies, however we do anticipate materials financial savings. Key to observe can be the upcoming EGM, and submitting of a binding settlement for the merger. Now we have up to date our mannequin to issue ZEEL’s FY21 annual report. Our goal worth rises to Rs374 (from Rs200) as we elevate the FY23E P/E a number of to 22x (from 12x),” an analyst from ICICI Securities stated.