Zee Entertainment share price crashed more than 14% in intraday deals on the BSE on Monday, 31 August. Zee Entertainment shares opened at ₹100.85 against their previous close of ₹101.55 and dropped as much as 14.3% to hit an intraday low of ₹87. The stock, however, pared losses and traded nearly 9% down at ₹92.45 around 10:45 AM on the BSE, looking set to extend losses for the fourth consecutive session.
Why is Zee share price falling?
Zee shares are witnessing a heavy selloff after three lenders- Canara Bank, Union Bank of India (UK) and LIC Housing Finance - on Saturday said they will challenge the National Company Law Tribunal's (NCLT) order approving a repayment plan proposed by Essel Group founder Subhash Chandra.
The three lenders said on Saturday that they had opposed the plan, which provides for ₹6.25 crore to be distributed among creditors and another ₹25 lakh towards insolvency process costs. The plan was approved by the NCLT on August 25 despite objections from several financial creditors.
The appeals by these lenders against the NCLT order will take the dispute to the NCLAT.
The NCLT approved a plan under which ₹6.25 crore would be paid to creditors, against admitted claims of approximately ₹22,006.57 crore. A further ₹25 lakh has been earmarked for insolvency-process costs.
Zee Entertainment share price trend
Zee Entertainment's share price is up 1% year-to-date, compared to a 10% fall in the equity benchmark Sensex.
However, over the last 1 year, the stock has crashed 21%, hitting a 52-week low of ₹68.10 on 23 March this year and a 52-week high of ₹121.75 on 22 September last year.
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