Shares of Zee Entertainment Enterprises Limited (ZEEL) tumbled over 14 per cent in intra-day trade on Thursday after the National Company Law Tribunal admitted an IndusInd Bank plea for insolvency proceedings against the media firm.
The stock tanked 14.23 per cent to Rs 176.60 -- its 52-week low -- during the day on the BSE. However, it later recovered most of the early lost ground and ended 3.47 per cent lower at Rs 198.75 apiece.
On the NSE, it settled 3.46 per cent lower at Rs 199.20 per piece after falling 14.44 per cent to Rs 176.55 -- its 52-week low -- in intra-day trade.
In volume terms, 26.67 lakh shares were traded on the BSE and over 7.65 crore shares on the NSE during the day.
The National Company Law Tribunal has admitted an IndusInd Bank plea for insolvency proceedings against ZEEL.
The matter pertains to a default of Rs 89 crore by Zee Group's multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.
The private sector lender has also filed a separate insolvency petition against Siti Networks at the NCLT. The NCLT has appointed Mohit Mehra as the resolution professional in this matter.
The NCLT has admitted the plea at a time when ZEEL is in advanced stages of merging with Sony in one of the biggest deals in the media and entertainment sector.
