On Tuesday, November 19, morning trading on the BSE saw a nearly 8% increase in Zee Entertainment shares, one day after the business announced Punit Goenka’s resignation as managing director. Nevertheless, he will remain the CEO. In contrast to its closing price of 115.50, Zee Entertainment’s stock began at 118.05 and increased by as much as 7.8% to reach 124.50. The stock was up 7.27 per cent at ₹123.90 at around 10 am.
“Punit Goenka decided to relinquish his position as Managing Director of the company to entirely focus on his operational responsibilities assigned to him by the board. The board of directors of the company accepted the resignation of Punit Goenka as Managing Director of the company and appointed him as CEO,” the company said in an exchange filing on Monday, November 18.
Additionally, the business announced that its Chief Financial Officer, Mukund Galgali, will also serve as its Deputy Chief Executive Officer. The modification will take effect on November 18, 2024.
“To ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy, which can only be achieved in an operational capacity. In the long-term interest of the company and all its stakeholders, I have approached the board with a request to attain operational focus as the Chief Executive Officer. I am grateful to the board for recognising my efforts and supporting me in this approach,” Punit Goenka said.
Ten days before the shareholders’ meeting, where he was scheduled to request approval for a further five-year term as the company’s MD and CEO, Goenka announced his resignation as managing director.
On Thursday, November 28, the firm will have its 42nd Annual General Meeting.
Even though Goenka has resigned as MD, shareholders will choose at the AGM whether or not he remains a director on the company’s board. Goenka will require the support of more than 50% of shareholders in order to be reappointed.
Goenka announced in April that his pay would be reduced by 20% to promote efficiency, frugality, and a laser-like focus on high-quality content.
Zee shares were down 53% over the previous year as of the end of the previous session. On December 12 of last year, the stock reached a 52-week high of ₹299.50, and on November 13 of this year, it fell to a 52-week low of ₹114.40.
