Rakesh Jhunjhunwala’s Rare Enterpises, BofA Securities has taken a 1% stake in Zee Entertainment

Rare Enterprises, a stock exchange company owned by ace investor Rakesh Jhunjhunwala, on September 14 took over half a cent from Zee Entertainment Enterprises, a day when stocks plummeted to 40 percent after shareholders demanded the removal of three directors including Punit Goenka, the son of Essel party chairman chairman Chandra.

Rare Enterpises bought 50 lakh shares in the company, representing 0.52 per cent of the total paid, at a cost of Rs 220.44 per share on the NSE, bulk deal data showed. The stake is priced at Rs 110.22 crore.

BofA Securities Europe SA also acquired 48,65,513 shares of Zee funds at Rs 236.2 per share.

Concerns about corporate governance behind key shareholders, Invesco Developing Markets Fund and OFI Global China Fund LLC demanded the removal of three directors, apparently did not affect investor confidence, as the stock accounted for 40 percent closing at Rs 261.50 on the BSE, the rate the highest seen since February 2020.

Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, said appointing new directors would improve corporate governance in the company, as long as new directors better understand the business.

Invesco and OFI Global China Fund LLC are the largest shareholders of Zee Entertainment Enterprises, with a total of 17.88 shares in the company. They have called for the removal of Goenka, Manish Chokhani and Ashok Kurien as directors of the company, the company said in a lawsuit on September 13. The company said Chokhani and Kurien resigned immediately.

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The two funds also sought to appoint six new directors, to complete these files. The nominated directors are Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.

The promoters currently held a 3.99 percent stake in the company, while joint ventures including Nippon Life, Mirae Asset, Kotak MF and ICICI Prudential hold 8.1% shares in the company as of June 2021, with insurance companies holding 10 percent.

Among them, foreign investors are the largest shareholders with 57.46 per cent shareholding including Amansa Holdings, HSBC, Vangyard International, Government Pension Fund Global and the City of New York Group Trust.

Among other mass transactions, specialty chemical company Ami Organics also saw huge demand from investors on September 14 as it was the first trading day after the public issue. Vanaja Sundar acquired 5 lakh shares of Ami at Rs 910 per share and Vanaja Sundar Iyer bought 4 lakh shares at Rs 909.97 per share on the NSE.

Ami Organics had a debut with a premium of 48 per cent and finally stabilized at Rs 934.55, an increase of 53.20 per cent on healthy doses, on the day of listing. Public releases of Rs 570-crore are 64.54 times higher.

Acacia Conservation Fund LP sold 3.61 shares of lakh equity in metal fabrication and cutting equipment Esab India for Rs 2,235.28 per share. Pramerica Mutual Fund was a buyer of other shares, receiving 2.7 lakh equity shares at Rs 2,235 per share.
Vishal Mahesh Kothari bought 4,28,383 shares in Moksh Ornaments for Rs 36.99 per share, Hema Maheshwari sold 1 lakh shares in Nandani Creation for Rs 58 per share and Ramesh Kumar Mantri HUF sold 80,000 shares for Rs 62.1 per share.

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Shreeji Capital and finance sold 2,21,412 shares in Pioneer Embroideries for Rs 67.01 per share, while Vistra ITCL India issued 2,57,442 shares in Walchandnagar Industries for Rs 61.1 per share. Ravi Kamepalli sold 6.25 lakh shares to Zen Technologies for Rs 226.1 per share on the NSE.

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