Rakesh Jhunjhunwala made Rs 70 cr in 10 days from Zee Entertainment Share. Details here



Big Bull Rakesh Jhunjhunwala’s recent investment in Rare Enterprise in Zee Entertainment saw him return over 61% in just six days after his investment. Jhunjhunwala won over Rs 62 crore. A few days ago, on September 14, Rare Enterprises owned by Jhunjhunwala bought 5 million shares of ZEEL, valued at Rs 110 crore, priced at Rs 220.44 per share through wholesale transactions on NSE . Based on the current price, the investment is now worth Rs 177.67 crore, up 61% or Rs 67.45 crore from the purchase price. With Rare Enterprise, BofA Securities Europe SA bought 4.86 million shares at an average price of Rs 236.2 a coin on the same day.

On Wednesday, ZEEL’s board of directors unanimously approved the principle of the merger between Sony Pictures Networks India (SPNI) and ZEEL. “The board of directors assessed the merger not only on the financial metrics, but also on the strategic value that Sony brings to the table. He also concluded that the merger will be in the best interests of all shareholders and stakeholders and is in line with ZEEL’s strategy to achieve higher growth and profitability as a leading media and entertainment company in South Asia. South, ”ZEEL said in a statement.

“In the merged entity, Sony will own 53% and Zeel 47% of the total shareholding, so Sony Pictures will have a controlling interest in the merged entity. Sony Pictures will also inject $ 1.57 billion (11,000 crore) into the merged company. Punit Goenka, who is Managing Director and Managing Director of Zeel, will remain Managing Director and Managing Director of the merged entity. We recommend investors to be cautious as Zee Entertainment Enterprises Ltd has risen 78% from 170 to 303 in the last month and at this time valuations are not being disclosed by Zeel, ”said Yash Gupta, analyst Equity Researcher, Angel Broking.

Shares of Zee Entertainment Enterprises Limited rose 30% on Wednesday after news of a merger with Sony Pictures was announced. The stock jumped 31.86% to close at Rs 337.10 on BSE. During the day it rose 39% to its 52 week high of Rs 355.40. On the NSE, it zoomed 30.50% to close at Rs 333.70. The company’s market valuation also jumped from Rs 7,823.98 crore to Rs 32,378.98 crore on BSE.

Sony has also agreed to transfer certain stakes to ZEEL promoters to keep their stake at 4% as a non-compete fee, and ZEEL promoters will have the option to increase their stake up to 20%. ZEEL does Not much disclosed about merger cost synergies, but we anticipate substantial savings. The key to watch would be the next EGM and the filing of a binding agreement for the merger. We have updated our model to take into account counts ZEEL’s FY21 annual report. Our price target increases to Rs374 (from Rs200) as we increase the P / E multiple FY23E to 22x (from 12x), “said an analyst at ICICI Securities.

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