The stock fell 5 per cent from its intra-day high of Rs 213.80. In comparison, the S&P BSE Sensex was down 1 per cent at 59,774, at 01:08 pm.
According to a report, foreign institutional investor Invesco Developing Markets Fund sold its entire 5.65 per cent stake in ZEEL via block deals.
“In Q4, Zee is likely to face the impact of blacking out of its channels for a few days, owing to its dispute with multiple system operators (MSO)/local cable operators (LCOs) on both, its advertising & subscription revenues. Zee is also likely to face a double whammy, with higher content costs attributable to the broadcasting of ILT20 in Q4. This is again likely to result in subdued margins for broadcasters,” the brokerage firm said.
“Advertising revenue will also be impacted by the blacking out of Zee’s channels for a few days due to the conflict between broadcasters and cable operators. Subscription revenue is also likely to be hit due to this issue,” the brokerage firm added.
Therefore, with weaker revenue flow-through, margins are likely to contract on a sequential basis, said analysts. Margins, further, are also likely to be negatively affected by higher investments, and additional expenses pertaining to ILT20 present in this quarter.