Zee shares crashed to Rs 86.90 apiece on NSE on Monday, the bottom degree seen by the inventory since Could this 12 months. The inventory is on monitor to document the sharpest single-day plunge in practically a month.
This comes after Canara Bank, Union Bank of India and LIC Housing Finance on Saturday mentioned they are going to problem the Nationwide Firm Legislation Tribunal’s (NCLT) order approving a compensation plan proposed by Essel Group founder Subhash Chandra.
NCLT’s approval of a compensation plan underneath which Essel Group chairman Subhash Chandra pays round Rs 6.5 crore towards admitted creditor claims of Rs 22,006.57 crore has sparked a debate over the 99.97% haircut.
The case, nevertheless, doesn’t contain a decision of company borrowings by Essel Group corporations, nor does it contain a discovering that Subhash Chandra personally borrowed Rs 22,000 crore.
The order is said to the non-public insolvency decision means of Subhash Chandra in his capability as a private guarantor to money owed owed by varied Essel Group entities and associated corporations.
When the matter went to a vote, collectors holding round 80.81% voting share supported the plan. The opposite collectors, together with HDFC and LIC Housing Finance, didn’t. Because the Insolvency and Chapter Code requires approval by a prescribed supermajority, the plan cleared the voting threshold and was subsequently introduced earlier than the NCLT for approval. The NCLT finally authorized the decision plan, leading to a restoration of roughly Rs 6.5 crore towards admitted claims exceeding Rs 22,000 crore.Additionally learn | How and why Zee founder Subhash Chandra’s Rs 22,006 crore debt was chopped to just Rs 6.5 crore
Earlier this month, Zee Leisure raised an preliminary Rs 660 crore by allotting 20.94 crore totally convertible warrants to promoter group entity Sunbright Mauritius Investments at Rs 126 apiece. The train was undertaken by the corporate’s preferential problem and allotment committee, following approvals from the board, shareholders, inventory exchanges and the Securities Appellate Tribunal (SAT).
Terming it a optimistic improvement for the inventory, Abneesh Roy, government director, analysis) at Nuvama Institutional Equities, mentioned it cleared the extended fundraise overhang because of the regulatory proceedings. He additionally famous that the allotment was smaller than the dimensions authorized by shareholders.
Roy mentioned ZEEL had obtained Rs 660 crore upfront, whereas the remaining about Rs 1,980 crore can be payable solely upon conversion. Since conversion can happen in a number of tranches over 18 months, the stability capital might are available by February 2028.
Additionally learn | Zee allots Rs 2,639 cr warrants to promoter entity, gets Rs 660 cr upfront
Zee share value
Zee Entertainment shares have fallen round 20% prior to now month, whereas the inventory is up round 2% to date in 2026. Over the previous 12 months, the inventory has declined 21%.
In the long term, Zee Leisure shares have fallen round 65% in three years and greater than 46% in 5 years.
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