Shares of Zee Entertainment Enterprises Limited (ZEEL) on Monday tumbled over 6 per cent in the mid-session trade even as NCLAT stayed the insolvency proceedings against the media house last week.
The stock of the firm plunged 6.44 per cent in the mid-session trade at Rs 183 on the BSE. During the intra-day trade, the stock fell 10 per cent to Rs 176.60.On the NSE, it slumped 6.24 per cent to Rs 183.35.
The matter pertains to a default of Rs 89 crore by Essel Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.
The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India’s biggest media empire.