Zee Entertainment Enterprises (NS:ZEE) shares gained following the rejection of Punit Goenka’s reappointment as a board director by the company’s shareholders.
During Friday’s trading session in Mumbai, Zee’s stock climbed as much as 7.8%, marking the highest surge in over five weeks.
The media conglomerate disclosed to exchanges that 50.46% of the votes cast by shareholders were in opposition to Goenka retaining his position.
This decision reflects the shareholders’ dissatisfaction with Goenka’s leadership, particularly during the recent impasse over the proposed merger with Sony (NYSE:SONY) Group Corp., which ultimately fell through in January due to disputes regarding Goenka’s role in the merged entity.
An ongoing investigation by India’s capital markets regulator into the activities of Zee’s founders added to the controversy.
Earlier in March, Goenka stepped down from his role as managing director of Zee, yet expressed his desire to continue as CEO. This announcement had previously led to a rise in the company’s share value.
The founders’ stake in Zee has now dwindled to a mere 3%, with institutional and retail investors holding the remainder.
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