Ace investor Rakesh Jhunjhunwala backed Rare Enterprises has bought 50,00,000 shares of Zee Entertainment Enterprises at Rs. 220.44 apiece on Tuesday.
Shares of Zee Ent soared 45 percent to touch an intraday high at Rs 270.85 on Tuesday on the BSE. The scrip was the best performer on Nifty 200 and ended 40 percent higher at Rs 261.50.
The interest in the stock has come after Manish Chokhani and Ashok Kurien resigned from the position of Non-Executive Non-Independent Directors of the company with immediate effect earlier in the day.
While Chokhani had cited changed circumstances and perspective post COVID, Kurien had reasoned his pre-occupation for the resignation, the firm informed in a regulatory filing.
In an interview with CNBC-TV18 Dipan Mehta, Director, Elixir Equities said that it is a step in the right direction.
"The present management has significantly diminished the value of Zee, it has been a massive underperformed. Getting new faces, new ideas can take the stock price higher. End of the day, Zee is a very strong brand and it has got a good network and is very strong in terms of its operations. But maybe the right type of management is what is missing over here," he said.
At the back of its news, media stocks as a group witnessed a buying frenzy with sectoral gauge, Nifty Media, surging the most among sectors on the NSE, ending 15 percent higher.
In an interview with CNBC-TV18, Karan Taurani, senior VP-research analyst, Elara Securities said that that stock might now see a rerating.
“Prima facie if you look at the situation and if the new management does come in, we do see a rerating trigger here,” said Taurani.
The entire overhang was around the corporate governance and some new write-offs which could probably be coming for the company, he added.
(Edited by : Abhishek Jha)
First Published: IST