Rakesh Jhunjhunwala’s notional profit of Rs 20 Crore after buying Zee
By Aditya Raghunath
Investing.com – Zee Entertainment Companies Ltd. (NS 🙂 shares rose 40% on September 14 after the announcement by its major investors of an extraordinary general meeting (EGM).
The purpose of the EGM, called by the company’s major shareholders, Invesco Developing Markets Fund and OFI Global China Fund LLC, was to discuss the removal of CEO and CEO Puneet Goenka as well as a few other directors.
Zee stock closed at Rs261.7, up 40.06% on September 14. A stock exchange filing showed that RARE Enterprises of Rakesh Jhunjhunwala bought 50 lakh shares of Zee at Rs 220.44 each on ESB. This represents 0.52% of the company. The move paid off immediately, with the stock rising by Rs 41.26 and giving RARE a theoretical profit of Rs 20.63 crore in one day.
Bank of America (NYSE 🙂 Securities Europe SA also acquired 4865,513 shares of Zee at Rs 236.2 per share.
Zee shareholders demanded the immediate removal of Goenka, Manish Chokhani and Ashok Kurien as directors of the company. Chokhani and Kurien resigned with immediate effect.
The shareholders proposed the names of six new directors for the board: Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.
Market analysts believe the new directors would improve corporate governance in the company.