MUMBAI: Interest in the Zee Entertainment Enterprises Limited (Zeel) appears to be rising. The stock witnessed a 52 week high of Rs 301.90 on 21 May 2014 and has been trading in the Rs 270 plus range today, rising Rs 7 plus in today's trading.
Not only did the company announce healthy results and a 200 per cent dividend on 21 May 2014, it has also got approval from the Reserve Bank of India (RBI) for Foreign Institutional Investors (FIIs) to invest up to 100 per cent in the company under the portfolio investment scheme on 2 June 2014. The investment limit has been revised from the earlier 49 per cent ceiling. The announcement was made by Zeel through a statement issued to the BSE on yesterday.
“The said communication is based on the proposal approved by the Board of Directors of the Company on 22 May 2013 and by the shareholders by passing a special resolution at the Annual General Meeting held on 25 July 2013,” stated the release on BSE.
The Reserve Bank, through a press statement said, “The Company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20/2000 RB dated 3 May 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.”
The approval has been given subject to the condition that “the onus of compliance with FDI policy and FEMA regulations including downstream investment would continue to remain on the Indian company, Zeel,” said the RBI in its statement.
The Reserve Bank has notified this under FEMA 1999.
FIIs so far held 48 per cent stake in the company while the promoter and the promoter group's shareholding was 43 per cent as of March 2013.
Zee Entertainment's channel portfolio comprises: Zee TV, Zee Cinema, Zee Music, Zee Premiere, ETC, ETC Punjabi, TEN Sports, Zee Studio, Zee Classic and Zee Sports.
