Zee Entertainment shares end 30.5% lower to notch their biggest single-day drop on record

The stock had earlier slipped 8% on January 9 this year, when news of the merger being called off had first surfaced via media reports.

Zee, however, has rejected claims made by Sony and stressed that it has not violated the terms of the merger agreement. The media company said it was actively evaluating available options to address the situation.

The developments have prompted multiple downgrades from the street who have nearly halved their price targets on the stock, citing rising competition and the dangers arising from a potential merger between Reliance Industries and Disney. You can read more on that here.

This has also put the spotlight on India's Mutual Funds, who increased their stake in Zee Entertainment for all nine quarters since the merger announcement in December 2021. As of December 2023, Mutual Funds own 32.5% stake in Zee, from the 12.1% they had in 2021. More on that here.

As much as 4.8% equity or 4.63 crore shares of Zee Entertainment worth ₹761 crore have exchanged hands via a block deal. Buyers and sellers in the transaction are not known yet.