17% Rise in Zee Entertainment Stock after Invesco Withdraws Demand For Board Resignation

There has been a sharp jump of more than 17% in the stock of Zee Entertainment on Thursday. This rise in stock has been seen after Invesco, the largest shareholder in the company, withdrew the demand for resignation from the company’s board.

As per bseindia.com, Zee Entertainment stock was trading at ₹ 299.15 on March 24, 2022, at 18:14, which is 16.83% higher than the opening price on Thursday.

Actually, in September 2021, Invesco, an American independent investment management company had put out an entreaty to hold an extraordinary general meeting (EGM) on the grounds that it felt as though things were not running smoothly at all.

They wanted to remove three directors from Zee Entertainment’s Board, including Managing Director and CEO Punit Goenka.

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After Zee refused to respond, Invesco moved an application before the National Company Law Tribunal (NCLT) in Mumbai which asked them to consider their request once again according to law.

Zee then went to the high court to try and stop Invesco from holding an EGM. In October 2021, one bench of Justice Gautam Patel granted an injunction against holding the EGM.

Now on March 23, 2022, the Invesco Developing Markets Fund decided they would not go ahead with the demand for the EGM to induct 6 independent directors.

Invesco is saying that they are meeting their goal of strengthening the board with the merger of Zee and Sony. They believe that the terms of this deal will be very good for the shareholders of Zee. This will also help them achieve their goal of strengthening the board.

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Notably, the new company formed after the Zee-Sony merger is the largest entertainment broadcast network in the country. According to estimates, This company has up to 30% of the market share when it comes to TV viewership.