Zee share price to be in focus on Monday after Sebi bars Subhash Chandra, Punit Goenka for one year

Zee share price: Zee Entertainment Enterprises Ltd. (ZEEL) shares are likely to remain in focus on Monday, August 3, after the Securities and Exchange Board of India (Sebi) barred founder Subhash Chandra and Managing Director and CEO Punit Goenka from accessing the securities market for one year each. The regulator also imposed a combined penalty of ₹1.48 crore over the unauthorised pledge of the company's land in Hyderabad to secure loans raised by promoter-linked Essel Group entities.

Separately, Sebi levied a ₹30 lakh penalty on ZEEL and barred the company from accessing the securities market for two months.

Sebi order and investigation

According to Sebi, the investigation began after Deloitte Haskins & Sells LLP, ZEEL's statutory auditor, highlighted in its FY19 audit report that the title deeds of certain immovable properties were missing.

The regulator found that the original title deeds of ZEEL's Hyderabad land had been deposited with Indiabulls Housing Finance on December 27, 2018, to create a first-ranking mortgage against loans availed by four Essel Group companies. Collectively, these entities had borrowed ₹726 crore, while Essel Home acted as the co-borrower.

Sebi alleged that the borrowing entities were ultimately controlled by Subhash Chandra, Punit Goenka and their family members through multiple layers of shareholding, making the transaction a related-party transaction under applicable accounting standards.

The regulator further said that Subhash Chandra signed the declaration and acknowledgement on behalf of ZEEL, confirming that all required corporate approvals had been obtained before the mortgage was created.

However, Sebi stated in its 150-page final order that "The investigation, however, did not find any prior approval of the audit committee, the board of directors or the shareholders of ZEEL for the creation of security over the Hyderabad land."

Other developments

The regulatory action coincided with another major development for the media company. Shareholders approved ZEEL's proposal to raise ₹3,144 crore through the issuance of convertible warrants to the promoter group, with the resolution receiving 76.64% of the votes, marginally above the 75% threshold required for approval.

The approval marks a significant turnaround from last year. A similar proposal to raise ₹2,237 crore through warrants had failed after receiving only 60% shareholder support, well below the statutory requirement.

Once the warrants are converted into equity shares, the promoter group's stake in ZEEL is expected to increase from 4% to 24%, resulting in a 21% dilution in the holdings of other shareholders.

Stock performance

ZEEL shares closed 2.85% higher at ₹115.45 on the BSE on Friday, July 31. The stock touched a 52-week high of ₹124.15 in August last year and a 52-week low of ₹68.10 in March 2026.

On the performance front, the stock has gained around 11% over the past one month, 27% in three months and 36% in six months. However, it remains down 3% over the past one year and has declined 43% over the last five years.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.