ICICI Prudential Mutual Fund Trims Zee Entertainment Stake by 2.15% Amidst Merger Fallout

5 Feb 2024 , 03:54 PM

ICICI Prudential Mutual Fund (IPru MF) sold a 2.15% stake in Zee Entertainment Enterprises Ltd between January 20 and January 30. The stake sale occurred after the $10 billion merger of Zee Entertainment with the Indian unit of Sony was called off on January 22.

Before the sale, IPru MF held a 7.24% stake in Zee, and post the sale, it retains a 5.09% stake in the company. The shares were sold in the secondary market, with 18.76 lakh shares being sold on January 30, as per a stock exchange filing.

IPru MF sold a total of 2.06 crore Zee shares during this period. At an average stock price of ₹177.11 apiece, the mutual fund sold approximately ₹365.7 crore worth of Zee Entertainment shares after the merger cancellation.

Zee Entertainment shares have witnessed a decline of over 25% since January 22, reaching ₹173.05 apiece on February 2. At the time of writing, the stock was trading at ₹178 which is a 2.29% hike than the previous close.

Zee’s promoters, led by MD and CEO Punit Goenka, currently own close to a 4% stake in the company, with the majority held by public shareholders, including prominent domestic mutual funds.

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