Rakesh Jhunjhunwala-backed Rare Enterprises buys stake in Zee Entertainment

While Chokhani had cited changed circumstances and perspective post COVID, Kurien had reasoned his pre-occupation for the resignation, the firm informed in a regulatory filing.

Zee Entertainment shares soar 40%: Where is the stock headed? Experts weigh in

In an interview with CNBC-TV18 Dipan Mehta, Director, Elixir Equities said that it is a step in the right direction.

"The present management has significantly diminished the value of Zee, it has been a massive underperformed. Getting new faces, new ideas can take the stock price higher. End of the day, Zee is a very strong brand and it has got a good network and is very strong in terms of its operations. But maybe the right type of management is what is missing over here," he said.

At the back of its news, media stocks as a group witnessed a buying frenzy with sectoral gauge, Nifty Media, surging the most among sectors on the NSE, ending 15 percent higher.

In an interview with CNBC-TV18, Karan Taurani, senior VP-research analyst, Elara Securities said that that stock might now see a rerating.

“Prima facie if you look at the situation and if the new management does come in, we do see a rerating trigger here,” said Taurani.

The entire overhang was around the corporate governance and some new write-offs which could probably be coming for the company, he added.