The company said it will undertake a strategic review of up to 50 percent of Essel Group's holding in Zee Entertainment
Moneycontrol News
Shares of Zee Entertainment fell over 2 percent in early trade as promoters on November 13 revealed plans to sell up to 50 percent of their stake to a strategic partner.
The stock slumped in morning after opening marginally higher than the previous close.
The reason behind the divestment is "to pursue disruptive technological development and transform the business into tech-media company," the promoters said in a statement.
The company said it will undertake a strategic review of up to 50 percent of Essel Group's holding in Zee Entertainment to "maximise value for the business".
Essel Group held roughly a 16.5 percent stake in the company as of September 2018.
Brokerages, which have mixed ratings on the stock, have reacted positively to the strategic stake sale.
Morgan Stanley has maintained 'Underweight' rating on the stock with a target price of Rs 410, while Macquarie has an 'Outperform' rating on the stock with a target price of Rs 556.
JP Morgan has retained its Neutral rating on Zee Entertainment with a target price of Rs 530.
A global strategic partner could enter the media/content business in India.
At 09:18 hrs, Zee Entertainment Enterprises was quoting at Rs 428.00, down 2.33 percent.
