After shareholder Invesco Developing Markets Fund stated it would not pursue the EGM requisition due September 11, 2021, Zee Entertainment’s stock soared 20% in early trade today.
The investor also announced that it has chosen to withdraw its demand notice, which sought Punit Goenka’s ouster from ZEE’s board of directors.
The announcement comes after the Bombay High Court granted Invesco’s appeal against a single-judge judgement granting a temporary injunction on Zee Entertainment’s EGM on Tuesday.
Invesco also reaffirmed its support for the ongoing Zee-Sony Pictures Networks India transaction. On the BSE, Zee Entertainment’s stock rose 20% to Rs 307.25, from the previous closing of Rs 256.05. Today, the large-cap stock opened with a 10% rise at Rs 281.65.
A total of 20.71 lakh shares of the company were traded, resulting in a Rs 61.36 crore turnover. Zee Entertainment’s market capitalization increased to Rs 28,186 crore. On the BSE, the stock reached a 52-week high of Rs 378.60 on December 15, 2021, and a low of Rs 166.80 on August 23, 2021.
The share price of Zee Entertainment is higher than the 5 days, 20 day, 50 day, and 200-day moving averages, but lower than the 100 day moving averages.
The stock has increased 42.65% in a year and has dropped 8.8% since the beginning of the year. The stock has increased by 32% in a month.
Invesco also stated that it will continue to monitor the proposed merger’s progress. Invesco said it will maintain the right to summon a new EGM if the transaction does not go through as planned.