ZEEL shares surge over 8% after NSE withdraws decision to exclude Zee Entertainment from F&O segment

ZEEL shares surge over 8% after NSE withdraws decision to exclude Zee Entertainment from F&O segment

Zee Entertainment Enterprises Ltd (ZEEL) share price surged over 8% to Rs 197.80 in the intraday trade on Tuesday on NSE after the National Stock Exchange said it would include the company back into the futures and options segment. The decision comes after the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceeding against ZEEL on Friday. The matter pertains to a default of Rs 89 crore by Essel Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor. The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India.

In a circular on Monday, NSE said it had withdrawn its previous decision, where it had excluded ZEEL from the F&O segment. “Accordingly, members are requested to note that circular NSE/FAOP/55754 dated February 23, 2023, regarding the Exclusion of Futures and Options contract on ZEEL stands withdrawn,” NSE said in a circular.

The exchange also advised the members to load the contract file before February 28. “Members are advised to load the updated contract.gz file in the trading application before trading on February 28, 2023. This file can be obtained from the directory faoftp/fao-common on the Extranet server,” NSE said.

ZEEL shares were trading 5.96% higher at Rs 193.90. The stock touched an intraday high of Rs 197.75 and a low of Rs 188.40. Zee Entertainment shares touched a 52-week high of Rs 308.65 on April 4, 2022, and a 52-week low of Rs 176.60 on February 2, 2022. At the current price, the market capitalisation of the company stands at Rs 18,638.88 crore.