The Subhash Chandra-owned Essel Group issued a press release this evening announcing that its promoters and the promoters of Zee Telefilms Ltd (ZTL) are poised to clear the full dues of Rs 2,200 million that were owed by them to the latter. Last week, the release says, the promoters, led by Chandra, placed nine million shares with a foreign institutional investor (FII) which will help them finally clear all their dues to ZTL once the transaction is settled. 

Hitherto, Rs 1,480 million of the amount had been returned by Chandra et al to ZTL, which means the current tranche is likely to have raised Rs 720 million and will free them of any liabilities. Rs 720 million for nine million shares works out to a price of Rs 80 per share for the FII, which is believed to be keen on entertainment and media stocks. This, at a time, when the share is trading above the Rs 100 level. 

The press release quotes Essel Group corporate finance president A.C. Saha saying that "we are going to return the entire remaining dues to ZTL during the course of this week. Placement of these shares reestablishes that the promoters of the Essel Group will always stand by their commitment." 

The announcement clarifies speculation on the promoters' sale that was running rife in the stockmarket on 4 January and posted on indiantelevision.com on 5 January's Breaking News. (Read: Block shares sale clears promoters' dues to Zee Telefilms?)