ZEEL shares jump 8% after shareholders reject Punit Goenka’s reappointment as director

Shares of Zee Entertainment Enterprises Ltd (ZEEL) rallied nearly 8% in early trade on Friday after shareholders of the company rejected a proposal to reappoint Punit Goenka as director. The media heavyweight has risen 15% since November 19 after Punit Goenka resigned as the company's managing director but was appointed CEO to focus entirely on operational responsibilities.

In the 42nd annual general meeting (AGM) of ZEEL held on November 28, a resolution for the reappointment of Punit Goenka as director was defeated as the shareholders rejected the proposal. As per the exchange filing, 49.54% of votes were casted in favour of the resolution while 50.4% voted against it.

"Resolution No. 3 (Goenka's reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," ZEEL said in an overnight exchange filing.

Reacting to the news, Zee Entertainment shares opened higher for the fifth straight session at ₹127.55, up 3.6% over the previous closing price of ₹123.15 on the BSE. In the first two hours of trade so far, the media stock gained as much as 7.7% to ₹132.60 amid strong volume, with more than 22 lakh shares changing hands over the counter. The counter has added over 13% in five trading days.

At the time of reporting, ZEEL shares were trading at ₹128.10, up 4%, with a market capitalisation of ₹12,300 crore. The midcap stock touched its 52-week high of ₹299.50 on December 12, 2024, and a 52-week low of ₹114.40 on November 13, 2024. In the last one year, the counter has lost 49%, while it has seen a correction of 55% in the calendar year 2024. In the past six months, the counter fell over 15%, whereas it climbed 7.5% in a month.

Earlier on November 18, Goenka had resigned as the MD of ZEEL, which was accepted by the board of directors of the company. However, he was appointed as CEO to focus entirely on operational responsibilities.

As per the exchange filing, Goenka had intended to dedicate his time entirely towards the future of the company by enhancing its performance and profitability levels in line with the direction given by the board in its meeting on November 15, 2024.

“Goenka’s approach stems from his enhanced focus towards the core business segments and the concerted efforts required to drive robust growth for the future in the interest of all its stakeholders. In line with the action-oriented steps implemented as part of his growth plan for the company, Goenka formed a new, lateral team structure,” the release noted.

The board had designated Mukund Galgali, chief financial officer, as deputy chief executive officer of the company. “Galgali will assume this role in addition to his profile as the chief financial officer of the company and will continue to report to the CEO, Punit Goenka. The appointment is effective immediately,” the company had said in the regulatory filing.

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