Zee Entertainment stock continues to decline for the seventh consecutive day as lenders start selling pledged shares.
On Monday, when BSE hit its highest 2-day gain, Zee Entertainment stock plunged nearly 10 per cent. In early Tuesday trades, Zee was again down two percent even as the BSE gained 150 points.
Zee Entertainment had entered a standstill agreement with its lenders to extend repayment deadline to September 30. Zee has already returned about half of the ₹11,000 crore owed to lenders but is expected to miss the new repayment deadline. Mutual funds therefore have already started selling some of the pledged shares of Zee Entertainment.
An Essel Group spokesperson confirmed the sale of ZEE shares by some of the lenders. “Essel Group confirms that the lenders, which had not agreed to grant the extension, have exited by selling the pledged shares of ZEEL. The other lenders that value the assets have agreed in principle to grant more time to the group,” he added.