GECs
UTV scrip makes impressive debut
MUMBAI: UTV Software Communications debuted today on the stock market, scaling to 30.8 per cent in early trade on its listed price of Rs 130.
On the Bombay Stock Exchange, the UTV scrip opened at Rs 165 at a premium of 27 per cent. And on strong buying support rose to Rs 170 during intra-day trade. It finally closed the day at Rs 168.
On the NSE the scrip listed at a premium of 15 per cent.
According to a market analyst, UTV is valued at Rs 3.27 billion on its close price of Rs 168. Going forward, films and television will significantly drive the topline and profits of the company, the anyayst said.
Discussing its debut, another analyst said that the market expects UTV to post earning per share (EPS) of Rs 8 and Rs12 for FY 05 and FY 06 respectively.
The company’s initial public offer raised Rs 910 million through an issue of nearly 7 million shares, representing 34.1 per cent of its post-issue equity capital.
UTV’s IPO was oversubscribed 26.35 times when it closed on 25 February.
A media analyst asserts that on the over-value denominator it is seen that with most scrips the similar allegations are made and these would include the likes of TV Today, NDTV, TV-18 and Zee.
Commenting on the comapny’s debut on the stock market UTV MD Ronnie Screwvala said, “I’m very happy at the scrip’s performance.”
Elaborating further, Screwvala said the company has lined up a new show for Sony namely, Tarana. There are two to three shows which have still to be finalised but should come on air soon, he added.
On the film front, Screwvala said UTV is slated to distribute six to seven movies in this calendar year.
The movies include Rang De Basanti directed by Rakyesh Mehra (releasing in June), Blue Umbrella directed by Vishal Bharadwaj (Maqbool), will be out for release post-Cannes in April. The movie has been adapted from a Ruskin Bond book. Some of the other movies are Shaadi No I and Parineeta.
Speaking on the performance of the Hungama Channel, he pointed out that the kids’ channel has progressed and It is third in the league after Pogo. In fact in many day-parts the channel has taken over Pogo.
Highlighting that Hungama channel garners more TVR’s (0.56 per cent) on Friday’s than even Cartoon Network (0.64 per cent), leave alone Pogo (0.27 per cent) and Disney (0.10 per cent), Screwvala expressed confidence that Hungama would continue to do well.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
