ZEE Entertainment Shares Rebound After Initial Plunge on Director’s Exit Ahead of AGM

ZEE Entertainment Enterprises Ltd (ZEE) witnessed a brief setback as its shares tumbled by 9% during Thursday’s trading session following the unexpected exit of non-executive non-independent director Adesh Kumar Gupta from the board. However, the stock demonstrated resilience, recovering most of its losses as the session progressed.

Gupta, who served as a crucial member of the audit committee and chairman of the risk management and stakeholders relationship committees, cited personal reasons and commitments for his departure ahead of the upcoming annual general meeting (AGM). The initial market reaction led to a decline of 8.79%, with the stock hitting a low of Rs 284.10 on the BSE.

In his resignation letter, Gupta expressed regret for being unable to continue as a director due to personal reasons and commitments. He withdrew his re-appointment at the AGM but extended his best wishes for the company’s success, particularly emphasizing the completion of the pending merger with Sony.

ZEE Entertainment responded by confirming Gupta’s exit from key committees after the AGM. The company’s 41st AGM is scheduled for Saturday, December 16, at 4:00 pm (IST). ZEE has announced that the AGM will be conducted through video conferencing and other audio-visual means, adhering to circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India.

Investors, initially concerned about the sudden exit, regained confidence as the trading session progressed, reflecting the market’s anticipation of a smooth AGM and positive outcomes for the pending merger with Sony.