Shares of Zee Be taught, a part of the Essel Group, tumbled 19 per cent on the BSE on Tuesday after Sure Financial institution initiated insolvency proceedings in opposition to the corporate. The corporate’s buying and selling closed at Rs 11.3 per share, which is nineteen.3 per cent decrease than yesterday’s closing value.
In a disclosure to inventory exchanges on Monday, Zee Be taught had stated that the personal sector lender had moved the Nationwide Firm Legislation Tribunal (NCLT), claiming that the corporate had defaulted on loans value Rs 468 crore.
Zee Be taught was within the strategy of compiling the knowledge to confirm the details, it stated, including that it will give an applicable response. Nonetheless, after Dish TV, Zee Be taught is the second firm the place the promoters of Sure Financial institution and Essel Group are head to head.
The lender is the biggest shareholder in Dish TV, with a 25.6 per cent stake within the firm, the place it’s looking for a change in administration. Final month, Essel Group chairman Subhash Chandra stated in an interview to Enterprise Customary that the financial institution must determine on its position as a Dish TV shareholder or lender.
Chandra additionally stated that the group was open to exploring a number of choices to settle the dispute, together with shopping for again the shares held by the financial institution, merging Dish TV with one of many rival gamers comparable to Airtel and Tata Play, and settling the variations. To resolve concerned appointing a mediator.
On Tuesday, the shares of Dish TV remained flat whereas buying and selling closed at Rs 16.3 on the BSE.
Chandra had pledged shares of Dish TV, owned by his brother Jawahar Goyal, as safety for the credit score services availed by the Essel Group from Sure Financial institution.
The lender had claimed that it had given loans value Rs 5,270 crore to 10 totally different Essel Group entities between 2015 and 2018. Nonetheless, Chandra stated the promoter entities of the Essel Group really owed the financial institution Rs 4,200 crore and the dispute was hurting Dish. TV enterprise and stakeholders.