The Zee Entertainment Enterprises Ltd. (ZEEL) stock on Tuesday fell 33% to ₹155.90 on the BSE a day after Sony called off the merger putting the blame on Zee and even slapping a notice to recover $90 million as termination fee.
Though ZEEL’s management has put a brave face and despite speculation that the company would be acquired by the Adani Group, the stock went in for a free fall.
ZEEL dragged down the NSE’s media index.
Many brokerages have downgraded the stock.
Ashwin Patil, Senior research analyst at LKP Securities said, “The termination of the deal has led to the fall in share prices which were held for a long time hoping that this merger would propel the consolidated entity as the biggest media house in India.”
