Two promoter entities of Zee Entertainment Enterprises Ltd. sold shares worth Rs 332 crore of the media conglomerate in the last two months.
Cyquator Media Services Private Ltd. sold 53.1 lakh shares worth Rs 227 crore between February 13 and March 29, according to the company's exchange notification. The shares were sold at an average price of Rs 427.30 apiece.
Essel Corporate LLP sold 23.2 lakh shares between March 13 and March 25, at an average price of Rs 453.10 apiece. The shares sold in both the transactions amount to nearly 0.8 percent of the Subhash Chandra-led company's equity and 1.9 percent of the promoter holding.
The company had earlier announced it's looking to sell a significant stake to a strategic investor as it struggled to raise funds and repay debt.
Mutual funds have a total exposure of around Rs 7,500 crore to non-convertible debentures issued by nearly 13 entities of the Essel Group, according to data available with rating agencies. NBFCs have an exposure of about Rs 4,000 crore to these securities.
In January, Chandra, who has been under pressure from lenders to pay up, won a reprieve to find a buyer for Zee stake to raise the money. Shares of Zee Entertainment have rallied 36 percent so far this year since logging their worst-single day decline on Jan 25.
It wasn't immediately known whether it was the lenders or the promoters who sold the shares.
In an email response, a spokesperson of the Essel Group said none of the lenders with whom the agreement has been signed have sold any shares. “The understanding with the lenders stays firm and constant and the group is thankful to them for their support and trust,” the spokesperson said.
The promoter sales don't affect the standstill agreement, according to a senior official at one of the mutual funds involved. It may have been carried out to meet certain short-term obligations and may not lead to large lenders selling shares in open market, the person said on condition of anonymity.
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