Home / Companies / News /  Essel promoter entities sell shares worth over 1,050 crore in 6 listed firms

NEW DELHI : Essel group's promoter entities have sold shares worth over 1,050 crore in six listed group firms in the open market between January 25 and February 1, 2019.

According to multiple regulatory filings by different promoter group entities of Essel group, shares of Zee Entertainment Enterprises, Dish TV, Zee Media Corporation, Siti Networks Ltd and Zee Learn were sold in open market.

Essel group raised the largest amount of 874.11 crore through sale of stake in its flagship firm Zee Entertainment Enterprises by its promoter entities Cyquator Media Services Pvt Ltd and Essel Corporate LLP selling 1.69%and 0.85% stake respectively between January 25 to February 1, 2019.

Other promoter group firms World Crest Advisors LLP (0.86%), Direct Media Distribution Ventures (0.80%) and Veena Investments Pvt Ltd (0.35%) sold shares worth 97.34 crore in Dish TV during the period.

In Zee Media Corporation, ARM Infra & Utilities Pvt Ltd (2.38%) and 25FPS Media Pvt Ltd (3.09%) sold shares worth 45.05 crore.

ARM Infra & Utilities Pvt Ltd (1.41%) and 25FPS Media Pvt Ltd (3.09%) sold shares worth 2.90 crore in Diligent Media Corporation Ltd.

Arrow Media & Broadband Pvt Ltd sold 4.50% stake in Siti Networks for 28.88 crore on January 28.

Jayneer Infrapower & Multiventure Pvt Ltd sold 0.34% stake in Zee Learn for 2.92 crore in open market.

Transaction value have been calculated based on weighted average price of the stock on the day of sale and the number of shares sold.

A query sent to the Essel group seeking reasons for the open market sale of shares did not elicit any response till the time of filing of this report.

On Sunday, the Essel group said it had sealed a formal agreement with its lenders, under which it gets time till September to deleverage or pare its debt.

The agreement was with those lenders who have taken pledged shares of the group flagship and listed entities, Zee Entertainment Enterprises and Dish TV India.

On January 25, 2019, Essel group companies had come under massive selling pressure, plummeting up to 33%, and suffered a combined erosion of 13,352 crore in market valuation.

On January 26, Essel Group chairman Subhash Chandra had said his company is in a financial mess and has blamed the same for the aggressive bets on infra, which has gone out of control since the IL&FS crisis and also the acquisition of Videocon's D2H business.

Apologising to lenders, Chandra also alleged that some negative forces are out to sabotage his efforts to raise money through a strategic sale in the flagship company Zee Entertainment Enterprises.

This story has been published from a wire agency feed without modifications to the text.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout