Zee Shares Surge as CEO Goenka's Reappointment is Denied

Zee Entertainment Enterprises shares gained in value after the company's shareholders rejected Punit Goenka's reappointment as a board member. During the trading session in Mumbai on Friday, Zee's stock price rose by as much as 7.8%, marking the highest increase in over five weeks. The media giant stated in a notice to the exchanges that 50.46% of the votes cast by shareholders were against Goenka retaining his position. This decision reflects shareholder dissatisfaction with Goenka's leadership, particularly highlighted by the recent deadlock regarding the proposed merger with Sony Group Corp., which had been unresolved due to disagreements over Goenka's role in the combined company since January. Additionally, the ongoing investigation by India's capital market regulator into the activities of Zee's founders has fueled further controversy. In early March, Goenka stepped down as managing director of Zee but expressed his desire to continue as CEO, a statement that previously led to an increase in the company's stock value. The founders' stake in Zee has now dropped to just 3%, with the remainder held by institutional and individual investors.