Shares of Zee Entertainment slips post investment in tech arm

The shares of Zee Entertainment Enterprises Limited (ZEEL) slipped more than eight per cent on Monday after the company recently announced that it has invested Rs 522 crore in its tech subsidiary, Margo Networks Private Limited.

ZEEL owns 80 per cent stake in Margo Networks, which offer streaming, advertising and content distribution services under the brand name, SugarBox.

In 2017, when ZEEL had picked up 80 per cent stake in Margo Networks for Rs 75 crore, it was presumed to be a bad investment as the latter was expected to close FY20 with revenue of just Rs 47 lakh. Post the current investment of Rs 522 crore, which ZEEL will invest over a period of time in order to exploit the strong synergies of the technology developed by SugarBox; the stock plunged over 12 per cent and closed around nine per cent down on April 13, 2020.

Indian mass media company, Zee Entertainment Enterprises (formerly Zee Telefilms) is owned by Essel Group and is headquartered in Mumbai.

The stock market is closed today on the occasion of Dr Baba Saheb Ambedkar Jayanti. On Tuesday, the stock of Zee Entertainment Enterprises closed at Rs 137.10, down by 8.57 per cent against its previous close of Rs 149.95. Its 52-week high is Rs 439.95 while, its 52-week low is Rs 114.00 on BSE.