Shares of Zee Entertainment surged as much as 6.2 per cent to hit an intraday high of Rs 280 after foreign institutional investor Invesco Developing Markets Fund offloaded 5.51 per cent stake in the company. Zee Entertainment is expected to soon merge with promoter of Sony Pictures - Culver Max Entertainment.
Over 1.84 crore shares changed hands on the National Stock Exchange, data from stock exchange showed.
The block deal in Zee Entertainment will lead Inveso offloading half of its stake in the company which stood at 10.14 per cent, data from stock exchange showed. The block trade will lead to Invesco selling 5.29 crore in the price range of Rs 250-263.7 per share, according media reports.
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Brokerage firm Kotak Securities is acting as the broker for the block trade.
Earlier this year, Invesco offloaded 7.74 per cent stake in Zee Entertainment Enterprises Ltd (ZEEL) for Rs 2,092 crore through an open market transaction. According to bulk deal data available with the BSE, Invesco Oppenheimer Developing Markets Fund sold a total of 74,318,476 shares, amounting to 7.74 per cent stake, of ZEEL. The shares were divested at an average price of Rs 281.46 apiece, valuing the transaction size to Rs 2,091.76 crore. Meanwhile, Morgan Stanley Asia Singapore Pte picked up over 1 crore shares of ZEEL while Segantii India Mauritius purchased 99 lakh shares of the company. The scrip of ZEEL dropped 2.1 per cent to settle at Rs 284.85 apiece on the BSE.
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On Wednesday, Invesco announced that three funds managed by its developing markets investment team, including Invesco Developing Markets Fund, will sell up to 7.8 per cent of the share capital of ZEEL to align exposures to the firm with other funds managed by the team. Invesco, which is the single-largest shareholder in ZEEL, had said that after the proposed sale, the three funds managed by its developing markets investment team will continue to own in aggregate at least 11 per cent of ZEEL.
As of 11:29 am, Zee Entertainment shares were trading 3.67 per cent higher at Rs 272.95, outperforming the Sensex which was up 0.9 per cent.
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