Zee Entertainment continues to fall for straight sixth day, plunges nearly 10% to five-year low

Extending the losses to the straight sixth day, shares of Zee Entertainment Enterprises (ZEEL) plunged 9.63 percent to five-year low of Rs 272 on Monday.

The ZEEL stock hit an intra-day low of Rs 269, down 10 percent in an otherwise strong market, which closed on a two month high. Sensex skyrocketed 1,075 to 39,090 while broader NSE Nifty zoomed by 326 points or 2.89 percent to end at a two-month of 11,600.20.

The shares of Zee Entertainment fell 22 percent in six days from Rs 350 on 13 September to Rs 272 on Monday. It was trading at its lowest level since 14 August 2014 on the BSE.

Representational image. Reuters.

Essel group, the owners of ZEEL, is facing a debt of over Rs 11,000 crore and is also working to offload promoters stake on further divestments, which also include its non-media assets, reported PTI.

On 19 September, a Delhi High Court-appointed arbitrator asked Essel Group chairman Subhash Chandra not to sell his unpledged stake in ZEEL till next month in an ongoing dispute with Indiabulls Housing Finance over default in repayment of loans worth Rs 200 crore, said a report in The Economic Times.

ZEEL shares fell nearly 3 percent intraday on the day after the arbitrator asked its promoters to not sell any unpledged shares, said the report.

On 10 September, Essel Group had announced completion of the first tranche of ZEEL's stake sale, which is 8.7 percent, to Invesco Oppenheimer Developing Markets Fund.

Besides, Essel group is also working actively on further divestments including its non-media assets, Essel group said in a regulatory filing.

On 31 July this year, Essel Group had announced to sell 11 percent promoter stake in ZEEL to Invesco Oppenheimer for Rs 4,224 crore.