Rakesh Jhunjhunwala makes 50% gain in this stock in just one week1 min read . Updated: 22 Sep 2021, 03:58 PM IST
- Rakesh Jhunjhunwala's company last week had bought 5 million shares of Zee Entertainment at ₹220.40 per share
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Zee Entertainment Enterprises (ZEEL) shares surged over 30% in Wednesday's deals after the media and entertainment giant announced that its board has given an in-principle nod for merger with Sony Pictures Network India (SPNI). The stellar rally in the stock has helped its new investor Rakesh Jhunjhunwala, who bought stake in Zee last week, add significant gains in his net worth.
Veteran investor Jhunjhunwala's Rare Enterprises last week bought 5 million or 50 lakh shares of ZEEL at ₹220.4 per share. With the stock rising to ₹337 per share today, ‘Big Bull’s stake value in Zee has surged more than 50% in the last one week so far.
Jhunjhunwala acquired Zee's stake on the day when its shares soared 40% in a record daily gain after top shareholders called for a management reshuffle, including the exit of its chief executive officer Punit Goenka from the board. BofA Securities Europe SA had also bought 4.86 million shares of the media company for ₹115 crore at ₹236.20 apiece on the same day.
Leading media firms Zee Entertainment and Sony Pictures on Wednesday said they have received in-principle approval for a merger that will combine both companies' linear networks, digital assets, production operations and program libraries.
It also added that Zee Entertainment Managing Director and Chief Executive Officer Punit Goenka, who is facing pressure from two largest shareholders of the company - Invesco and OFI Global China Fund LLC - to quit the post, would continue to lead the merged entity.
“With Sony Pixar acquiring Zee Entertainment, it should put to rest all the investor concerns regarding Corporate Governance issues at Zee. Additionally, Sony will invest about Rs. 11,500 cr in the merged company. Zee business has seen steady growth and will definitely benefit from this merger. The stock might get re-rated post this event and will definitely benefit the shareholders in the long run," said Ujjawal Kumar, a Research Analyst at Green Portfolio.
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