ZEEL stock continues to soar after merger with Sony Pictures Network India

ZEEL and Sony Pictures said on Wednesday that they received in-principle approval for a merger that will combine both companies' linear networks, digital assets, production operations and program libraries. Sony has proposed to invest $1.58 billion in the merged company.

The stock of Zee Entertainment Enterprises (ZEEL) continued its upward trajectory on Thursday morning, trading at ₹339.70 on the Bombay stock Exchange (BSE) a little after 11am and ₹339.50 at National Stock Exchange (NSE) during the same time. The stock price started zooming on Wednesday after ZEEL announced a landmark merger with Sony Pictures Network India.

The shares of ZEEL on Wednesday zoomed nearly 32% after the merger announcement with the stock closing at ₹337.10 on the BSE.

The company's stock will be in focus today along with stocks of Titan, Vodafone, Dish TV among others, Livemint reported on Thursday.

ZEEL and Sony Pictures said on Wednesday that they received in-principle approval for a merger that will combine both companies' linear networks, digital assets, production operations and program libraries. Sony has proposed to invest $1.58 billion in the merged company.

Punit Goenka will be the managing director and the chief executive officer (CEO) of the merged entity. "I will continue to serve the merged entity as the Managing Director and CEO with the necessary approval," he said on Wednesday.

The shares of ZEEL on Wednesday zoomed nearly 32% after the merger announcement with the stock closing at ₹337.10 on the BSE. During the day, it rallied 39 per cent to its 52-week high of ₹355.40.

While on the NSE, the stock zoomed at 30.50% to close at ₹333.70 on Wednesday.

Zee's market valuation also saw a massive jump from ₹7,823.98 crore to ₹32,378.98 crore on the BSE.

The merger with Sony will also see former's promoters get an additional 2% stake as part of a non-compete agreement. "The stake transfer is roughly around 2 per cent as envisaged in the transaction. Sony will remain a majority shareholder of this company (merged entity) with more than 50 per cent," Punit Goenka told investors on Wednesday.