Zee Entertainment's Stock Jumps More Than 50% In Four Sessions After Investor Activism
All Essel Group stocks gained at least for the second straight day after billionaire investor Rakesh Jhunjhunwala bought shares of Zee Entertainment Enterprises Ltd. following investors seeking removal of its three directors, including the company’s chief executive officer.
Shares of the broadcaster jumped as much as 15% in early trade on Wednesday after gaining 40% a day before, the most since trading started in 1993, according to Bloomberg data. The stock is up more than 50% in the last four session.
The data available on the National Stock Exchange of India revealed that Jhunjhunwala’s Rare Enterprises and BofA Securities Europe bought 48 lakh and 50 lakh shares, respectively, in Zee Entertainment on Tuesday.
That came after Zee Entertainment on Monday told the bourses that two institutional investors, which hold 17.88% in the broadcaster, had requisitioned an extraordinary general meeting of shareholders to vote for removal of Punit Goenka, Manish Chokhani and Ashok Kurien as directors. In a separate filing, the company said Kurien and Chokhani resigned with immediate effect.
Goenka on Tuesday fielded shareholder queries at Zee Entertainment’s annual general meeting. The questions pertained mainly to the company's operational performance and future strategy.