Despite NCLT setback, analysts remain positive on Zee Entertainment

Their sum-of-the-parts valuations ranges between Rs 275 and Rs 390, which indicates uncertainty

Devangshu Datta

Photo: Bloomberg

The National Company Law Tribunal’s (NCLT’s) declaration that Zee Entertainment is bankrupt adds a new measure of uncertainty to the proposed merger with Sony.
Three entities -- Aditya Birla Finance, IndusInd Bank and YES Bank -- have filed appeals in the NCLT for recoveries of Rs 130 crore, Rs 90 crore and Rs 540 crore, respectively. The money was borrowed by a related party – Siti cable – and not returned. Zee was a corporate guarantor.
The NCLT has declared Zee insolvent in the case with IndusInd Bank for recovery of Rs 150 crore. There are also disputes in these cases since the claimed interest charges and penalties are extremely high. Apart from these cases, there is also an ongoing legal dispute with IPRS (The music body), with a demand for royalty of Rs 150 crore.

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Zee Entertainmen

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  • 6M
  • 5Y
  • MAX

First Published: Feb 23 2023 | 8:11 PM IST

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