The National Company Law Tribunal (NCLT) has granted its approval for the merger between ZEE Entertainment and Sony Pictures Networks India (SPNI) as reporter said.
In response to the merger approval, the stock of ZEE Entertainment experienced a remarkable upswing, hitting the upper circuit of 20% and reaching share price of Zee entertainment of 290.70.
Likewise, Zee Media Corporation Ltd also saw a significant surge, touching the upper circuit of 20% with a price of Rs 14.45. Additionally, Zee Learn Ltd mirrored this trend, reaching the upper circuit limit.
ZEE Entertainment, Zee Media Corporation Ltd, and Zee Learn Ltd all saw huge increases in their stock values. The Nifty Media index increased by 6.30%, showing the market’s excitement about the deal.
The court additionally declared that the proposed merger wasn’t appropriate to be held hostage by the Securities and Exchange Board of India (SEBI) dispute.
This comes after market regulator Sebi barred Subhash Chandra and Punit Goenka from serving on the boards of publicly traded companies for a year in June, claiming that the two were actively involved in diverting funds to the group’s other listed corporations and firms associated to initial shareholders.
Zee Entertainment and Sony Pictures agreed to merge their companies in December 2021.