Rakesh Jhunjhunwala Zee Entertainment Enterprises Ltd. has made a market profit of Rs 50 crore in just eight days.
Rakesh Jhunjhunwala, Zee Entertainment Enterprises Ltd. raised Rs. Earned a market profit of up to Rs 50 crore. Last week, in the midst of a Zee Entertainment Enterprise boardroom fight, Rakesh Jhunjhunwala bought a 50 lakh stake in Rare Enterprises Jill for Rs. 220.44 per share in total contracts.
Today, after the company’s board of directors approved the merger of Sony Pictures Networks India, Jill raised its stake to Rs. Reached a new high of 321. With today’s gain in share price, Jhunjhunwala has made a profit of over Rs 100 per share, totaling Rs 50 crore.
The Jill board of directors has approved the implementation of a non-binding schedule with Sony Pictures, which will allow St. Goenka to remain in his chair for a period of five years.
In doing so, Puneet Goenka will retain his position as MD and CEO of ZEE Group, thwarting Invesco’s attempt to remove him from the board.
Likita Seppa, Senior Research Analyst at Capitalvia Global Research, Financial Express Online, said that the affiliated company and its management team will greatly benefit from ZEEL’s content production and Sony’s success in deep customer connections and entertainment genres. Seppa added that this will strengthen its prospects by multiplying the value of shareholders in the long run.
Neither Rakesh Jhunjhunwala nor Rare Enterprises name is included in ZEEL’s partner form as only the names of companies holding 1 per cent stake in the company are shown.
Analysts have advised investors to be cautious after the sudden rise in Zee Entertainment stock prices. “We recommend investors to be cautious as ZEEL has rallied 78 per cent to Rs 170 per cent in the last one month.
Until now, estimates have not been disclosed by ZEEL,” said Yash Gupta, equity research analyst, Angel Brokerage . Analysts expect ZEEL to receive a significant revaluation. It is currently trading at 23x / 19x FY22 / FY23 earnings, said Ashwin Patil, senior research analyst at LKP Securities .
Last week, apart from rare firms, Bofa Securities Europe SA bought 48.65 lakh shares of Jill at an average price of Rs 236.2, and Jump Trading Financial India Pvt Ltd bought 1.02 crore shares at an average price of Rs 236.50 each.
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