Zee Entertainment shares plunge 14% amid lender legal challenge

Zee Entertainment shares plummeted by more than 14% during intraday trading on the Bombay Stock Exchange on Monday, August 31. The stock hit an intraday low of ₹87 after opening at ₹100.85.

The sell-off follows an announcement that three lenders—Canara Bank, Union Bank of India (UK), and LIC Housing Finance—intend to challenge a National Company Law Tribunal (NCLT) order. The order approved a repayment plan proposed by Essel Group founder Subhash Chandra, which involves distributing ₹6.25 crore to creditors against admitted claims totaling approximately ₹22,006.57 crore.

While the NCLT approved the plan on August 25, the lenders have expressed opposition to the significant haircut. The dispute is expected to move to the National Company Law Appellate Tribunal (NCLAT).