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Goldman Sachs offloads holding in ZEEL, transaction valued at Rs 3.22 bn

MUMBAI: Satellite television broadcaster Zee Entertainment Enterprises Ltd (ZEEL) witnessed frenzied trading activity after Goldman Sachs offloaded chunk of its holding in the company.

On Wednesday, the leading foreign institutional investor (FII) had sold 11.70 million shares of its holding in ZEEL through the open market. The deal size was valued at Rs 322 crore ( Rs 3.22 billion).

According to the stock exchanges, Goldman Sachs (Singapore) Pte sold 69.5 lakh (6.95 million) equity shares of ZEEL on the NSE and another 48.1 lakh (4.81 million) on the BSE. It realized Rs 274 per share through the open market route.

Goldman Sachs’ holding in ZEEL comprised 1.87 crore (18.7 million) equity shares or 1.95 per cent of ZEEL’s paid-up equity.

In January 2000, ZEEL had issued 80 lakh (8 million) warrants to Goldman Sachs to be converted into equal number of equity shares. Goldman decided to exercise the option. In December 2000, ZEEL issued 39 lakh (3.9 million) equity shares of Re 1 each at a price of Rs 1,000 per share (including share premium of Rs 999). Balance option was exercised the following fiscal.

Earlier this month, the Reserve Bank of India (RBI) had allowed ZEEL to increase its FII investment limit up to 100 per cent of its paid-up capital. Prior to that, the investment limit for FII in the company was 49 per cent. This announcement had a favourable influence on its share price, which had then moved up 4 per cent to the current level of Rs 277.55 per share. However, its performance on the bourses remained edgy.

ZEEL has not only underperformed the broader markets over the past one month, but its performance has also lagged behind that of its peers. In the last one month, the counter has returned 0.82 per cent, while the CNX Media Index has gained 10.24 per cent.

Stocks such as PVR, Hathway Cable & Datacom, DEN Networks, Eros International and DB Corp have returned gains in excess of 11 per cent or more.

Meanwhile, DB Corp has witnessed a block deal on the BSE. The counter clocked a volume of 30.72 lakh (3.07 million) shares traded at Rs 303 per share, aggregating a total deal value of Rs 93.08 crore (Rs 930.8 million).

Three DB Corp promoters, namely Pawan Agarwal, Girish Agarwal and Sudhir Agarwal, sold 1.31 million, 1.155 million and 1.105 million shares respectively. Shares purchased by HDFC’s Mutual Fund will be held under HDFC Asset Management Company’s long-term MIP plan.