ZEEL stocks hits upper circuit after Invesco withdraws EGM requisition

24 Mar 2022 , 02:00 PM

Zee Entertainment Enterprises Limited (ZEEL) stock price skyrocketed 20% upper circuit as Invesco Developing Markets Fund, the largest shareholder of ZEEL with around 18% stake, decided to withdraw its requisition notice which sought the removal of MD and CEO Punit Goenka from the board of ZEEL.

The move comes a day after Invesco won its appeal in the Bombay High Court against the media company. Zee shares surged to hit an intraday high of Rs307.25, up 19.9% from previous close on the BSE. At around 1.50 pm, ZEEL was trading at Rs300.50 per piece up by Rs44.45 or 17.36% from its previous closing of Rs256.05 per piece on the BSE.

Invesco on Thursday stated that it has decided not to pursue the extraordinary general meeting (EGM) of Zee Entertainment Enterprises Ltd (Zeel) shareholders as per their requisition dated September 11, 2021.

The statement came after the Bombay High Court verdict acknowledged Invesco’s notice for an EGM as legally valid. In a statement, Invesco reiterated its support for the proposed merger of ZEE with Sony Pictures Networks India (SPN). The fund said that it had decided not to pursue an EGM to add six independent directors as Zee’s merger with Sony will achieve the fund’s aim of strengthening board oversight.

“Since we announced our intention to requisition, Zee has entered into a merger agreement with Sony. We continue to believe this deal in its current form has great potential for Zee shareholders,” Invesco said.