Zee Entertainment Enterprises Ltd. (ZEEL) saw a 14.26% increase in shares on Tuesday, reaching a day high of Rs 154.65. The media company’s merger termination disputes with Sony Pictures were resolved, which resulted to today’s substantial increase in the share price.
“ZEEL, Culver Max Entertainment Pvt Ltd (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt Ltd (BEPL), have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement,” according to a press release.
Strong trading volume
“As part of the settlement, the firms have mutually decided to drop all of their individual claims against one another from the Singapore International Arbitration Centre, from the ongoing arbitration, as well as from any connected lawsuits filed in the National Company Law Tribunal (NCLT) and other forums.
Additionally, the companies will notify the appropriate regulatory bodies and remove their respective Composite Schemes of Arrangement from the NCLT, according to ZEEL. Approximately 55.71 lakh shares were last spotted crossing hands on the market, which resulted in a strong trading volume today.
The amount exceeded the 2.-week mean volume of 5.87 lakh shares. The market capitalization (m-cap) of the stock was Rs 14,470.23 crore, with turnover of Rs 82.40 crore.
The short term moving average (SMA) for the scrip was greater than the 10-, 20-, 30-, 50-, and 100-day SMAs; however, it was lower than the 150- and 200-day SMAs. The relative strength index (RSI) for the stock after 14 days was 62.74. Oversold is defined as a level below 30, and overbought is defined as a value beyond 70.
According to BSE, the stock of the company has a price-to-book (P/B) ratio of 1.30 and a price-to-equity (P/E) ratio of 30.36. The return on equity (RoE) was 4.28 and the earnings per share (EPS) was 4.46.
