Shares of Zee Entertainment have risen sharply after Zee Entertainment and Sony Pictures Networks India Private Limited decided to merge. Rakesh Jhunjhunwala, popularly known as ‘Big Bull’ in the stock market, has benefited greatly from this. Rakesh Jhunjhunwala has made a profit of Rs 50 crore in a single week due to increased shares of Zee Entertainment.
Rakesh Jhunjhunwala’s Rare Enterprises bought 0.5 per cent or 50 lakh shares of Zee Entertainment. At the time, Zee’s share price was Rs 220.4. On the first day, Rakesh Jhunjhunwala had made a profit of Rs 20 crore. Now, a week later, Rakesh Jhunjhunwala has earned Rs 50 crore. Shares of Zee Entertainment are up 25 percent from a year earlier.
The Zee Entertainment Board has decided to merge with Sony Pictures Networks India Private Limited. The mega deal between the two companies is worth 1.5 1.5 billion, or Rs 11,615 crore, of which Sony Pictures will have a majority stake (52.93 per cent). After the merger, Puneet Goenka will be the MD and CEO for the next five years.
Following the mega merger, Sony Pictures Network will have a majority of 52.93 per cent and Zee Entertainment will have a 47.07 per cent stake. Sony Pictures Networks will have the authority to appoint a majority of directors to the merged company.