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Mumbai: Four companies owned by media mogul Subhash Chandra witnessed a sharp fall in their stock prices on Tuesday, led by a 33% decline in the scrip of Zee Entertainment Enterprises Ltd, as worried investors were left scratching their heads after Japanese giant Sony nixed a proposed $10 billion merger of its India unit with the country’s largest listed media and entertainment company.
In addition to Zee Entertainment posting its biggest single-day fall, the share prices of Zee Media Corp. Ltd, which houses the news channels, and Dish TV India Ltd, the country’s third-largest satellite TV provider, plunged 14% and 8.3%, respectively.
Shares of Zee Learn Ltd, which faces bankruptcy proceedings from creditors, fell 2%.
Investors in the four companies saw their notional wealth erode by ₹7,705 crore as the market cap of the four listed companies fell from ₹27,257.4 crore on Saturday to ₹19,551.65 crore at the end of market hours on Tuesday.
Incidentally, the earlier biggest single-day fall in shares of Zee Entertainment was five years back, when the scrip nosedived 26.6% on 25 January 2019 after media reports of a federal probe in the businesses owned by Chandra.
“Sony has terminated its merger with Zee considering various legal, leadership, and compliance issues. This resulted in a fall in share prices of Zee, which were held for a long time in the belief that the merger would propel the consolidated entity as the biggest media house in India,” said Ashwin Patil, senior research analyst at LKP Securities.
“Apart from that, Zee is operationally facing many challenges in the form of subdued advertising business, depleting viewership share in its key markets like Hindi GEC, Tamil and Marathi language markets,” he added.
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Published: 23 Jan 2024, 11:10 PM IST
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