Rakesh Jhunjhunwala has earned a mark-to-industry profit of Rs 50 crore in eight days on his share obtain of Zee Entertainment Enterprises Ltd. Last week, amid Zee Entertainment Enterprises boardroom tussle, Rakesh Jhunjhunwala’s Rare Enterprises purchased 50 lakh shares of ZEEL at Rs 220.44 per share in bulk bargains. Today, ZEEL stock surged to a fresh higher of Rs 321 apiece, rallying more than 25 per cent from the prior close, right after the company’s Board of Directors authorized a merger with Sony Pictures Networks India. With today’s get in the share value, Jhunjhunwala has earned a profit of more than Rs one hundred per share, totalling Rs 50 crore.
The Board of Directors of ZEEL has also authorized the execution of a non-binding term sheet with Sony Pictures which will permit Punit Goenka to hold his chair for a period of 5 years. With this, Punit Goenka will retain his position as MD and CEO of ZEE group, fending off Invesco’s try to get him off the Board. The merged entity and its management group will advantage tremendously from ZEEL’s competence in content production and deep buyer connections, as nicely as Sony’s results across entertainment genres, Likhita Chepa, Senior Research Analyst, CapitalBy means of Global Research, told TheSpuzz Online. Chepa added that this could raise the shareholders’ worth multifold more than the extended term thereby strengthening its prospects.
It may well be noted that Rakesh Jhunjhunwala or Rare Enterprises name does not figure in the shareholding pattern of ZEEL as names of only these entities are shown that personal more than 1 per cent stake in the corporation.
Analysts have advisable investors to stay cautious right after the sudden surge in the Zee Entertainment stock value. “We recommend investors to be cautious as ZEEL rallied over 78 per cent from Rs 170 in the last one month, and as of now valuations are not disclosed by the ZEEL,” Yash Gupta, Equity Research Analyst, Angel Broking, stated. Analysts count on ZEEL to get substantially re-rated. It at the moment trades at 23x/19x FY22/FY23 earnings, Ashwin Patil, Senior Research Analyst, LKP Securities, stated.
Last week, apart from Rare Enterprises, BofA Securities Europe SA bought 48.65 lakh shares of ZEEL at an typical value of Rs 236.2 apiece, and Jump Trading Financial India Pvt Ltd purchased 1.02 crore shares at an typical value of Rs 236.50 and sold at a value of Rs 236.66 apiece.
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