Zee Entertainment shares drop up to 14% as lenders challenge Subhash Chandra’s repayment plan

Shares of Zee Entertainment Enterprises witnessed sharp selling on Monday, falling as much as 14.3% to ₹87 on the BSE, amid reports that lenders plan to challenge the approval of Essel Group founder Subhash Chandra’s repayment plan.

The shares of the flagship company of the Essel Group pared some of their losses later in the session but were still trading 7.5% lower at ₹93.90 at the time of reporting. Zee Entertainment’s market capitalisation stood at around ₹9,019 crore.

The weakness in Zee Entertainment share was in sync with volatility in the broader market, with the BSE Sensex trading 0.35% lower at 76,994 and the NSE Nifty50 down 0.44% at 24,070.

Zee Entertainment shares have gained ground from their 52-week low of ₹68.10, touched on March 23, 2026, but remain below their 52-week high of ₹121.75 recorded on September 22, 2025.

NCLAT agrees to hear creditors’ plea

The sell-off in Zee Entertainment shares came after the National Company Law Appellate Tribunal (NCLAT) agreed to hear an urgent plea filed by creditors challenging an earlier order approving Subhash Chandra’s repayment plan.

Solicitor General Tushar Mehta, representing the creditors, sought an urgent hearing, following which the appellate tribunal agreed to take up the challenge on Tuesday at 10:30 am.

“There are two or three important questions which are to be decided,” Mehta told the tribunal, warning that if the findings under challenge were upheld, it could undermine the intent and purpose of the Insolvency and Bankruptcy Code.

The dispute follows the approval of Chandra’s repayment plan, which proposes a total payment of ₹6.5 crore. Of this, ₹6.25 crore is proposed to be distributed towards creditors, while ₹25 lakh has been earmarked for expenses related to the insolvency process.

The plan had received 80.81% approval by voting value, with 23 creditors participating in the voting. However, several institutional lenders opposed the proposal and have now challenged the approval.

The creditors involved in Chandra’s insolvency proceedings include HDFC Bank, LIC Housing Finance, Union Bank of India, Canara Bank and Sammaan Capital, formerly known as Indiabulls Housing Finance.

Chandra, meanwhile, has sought to address concerns over the scale of his liabilities. In a statement issued by his office on Sunday, he said his personal debt was nil despite personal guarantees worth around ₹22,000 crore.

He clarified that the ₹22,000 crore figure represented guarantees provided for loans raised by other entities associated with the group and did not represent his own borrowings.

According to the statement, around ₹4,800 crore of the guarantees were issued when the underlying loans were originally raised, while the remaining guarantees were provided after defaults had already occurred.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)