ZEEL share price captured the spotlight on Dalal Street on Monday even as the larger Indian stock market traded with caution a day after the US struck Iran.
The stock of the entertainment firm rose 10% today, backed by strategic corporate actions, renewed promoter confidence, and a broader turnaround narrative that has reinvigorated investor sentiments.
At the time of publication, the ZEEL share was trading at Rs 146.84, which was 10.34% higher than its previous close.
ZEEL share price: What’s behind recent surge?
The recent rally in the ZEEL share price came after the promoter group announced that it would raise its stake from just over 4% to 18.39%.
The investors see it as a move of confidence, which can signal the promoter’s renewed commitment to the company’s future.
The rise in stake will be achieved through the subscription of 16.95 crore fully convertible warrants at ₹132 each, amounting to a capital infusion of ₹2,237 crore.
While this move still needs approval from shareholders at an upcoming meeting, just announcing it has already given the market a boost of confidence.
But, there are significant risks around the move because if public shareholders don’t back the proposal, it could set up a clash between the promoters and the broader investor base.
The concerns around the face-off with investors came as in 2024 Zee’s shareholders voted against appointing Punit Goenka as a board member and director.
The decision was incredibly close as Goenka lost by just 0.5%, with 50.5 % of shareholders voting against his appointment.
With the promoters’ stake rising to 18.39%, the chances of Punit Goenka being reappointed as Managing Director improve.
Unlike independent directors, who, if voted out by shareholders, can’t reapply for the role for two years, there’s no such waiting period for promoters or full-time directors.
Broader uncertainties in markets
The developments came as the global stock markets are facing rising uncertainties after the United States launched strikes against Iran on Sunday.
The entry of the world’s most powerful country in the Israel-Iran conflict increased the heat in the Middle East, increasing the chances of a prolonged war between the parties.
Oil prices have been on a rollercoaster ride, surging sharply at the start of the week as geopolitical tensions in the Middle East reached a boiling point.
Brent crude briefly shot above $81 per barrel, marking its highest level since January.
This sharp spike was a direct response to escalating tensions in the Middle East, coming just after Israel’s earlier attacks on Iran and raising immediate fears about disruptions to oil supplies from one of the world’s most critical energy-producing regions.
The surge in oil prices reflects just how sensitive global energy markets are to geopolitical shocks, especially when they involve countries central to the world’s oil supply.
The post ZEEL share surges 10% on promoter stake hike, capital boost appeared first on Invezz
