Zee Entertainment Enterprises Ltd shares tumbled as much as 23% in intra-day trade on Tuesday after the Enforcement Directorate (ED) issued fresh summons to Essel group chairman Subhash Chandra with respect to loans given to the company by Yes Bank Ltd.
At 3:11 pm, Zee Entertainment shares were trading at Rs 132.70, down 20.2%, after hitting the day’s low of Rs 131.60, a level last seen nearly 8 years ago in June 2012. The stock has plummeted 35% in the last five trading sessions compared with a 13% drop in the Sensex.
The ED has asked Subhash Chandra to appear before it on March 18 as it investigates money laundering charges against Yes Bank co-founder Rana Kapoor. The agency has alleged that many big companies, including the Essel Group, have borrowed money from the private lender by giving kickbacks to Kapoor.It has also summoned DHFL promoters Wadhawans and Naresh Goyal of Jet Airways India Ltd on 17 March and 18 March, respectively.
Among others, Reliance Group’s Anil Ambani and Cox and Kings’ Peter Kerkar have also been asked to appear on 19March, while Gautam Thapar of Avantha Group will appear on 21March.
“We wish to confirm that the Enforcement Directorate has summoned Subhash Chandra on March 18 to make a statement on the information which is already available with them,” the Zee group said in a statement.
“However, the group wishes to clarify that most of the credit facilities were availed of by its infrastructure business and there is no debt on ZEEL, ZMCL (Zee Media Corp. Ltd), etc,” it said.
The statement added that the Zee group had never made any transactions with Rana Kapoor, his family, or any private entities controlled by them, and that “all credit facilities availed (by the infra firm) were fully secured”.