Media's intrepid warrior

WITH PROXY ADVISORY FIRMS ASKING SHAREHOLDERS TO BLOCK ZEE PROMOTERS' STAKE HIKE PLAN, IT WILL BE A TRIAL BY FIRE FOR GOENKA ONCE AGAIN

- VIVEAT SUSAN PINTO

THE OCCASION COULDN'T have been better for Zee Entertainment (Zee), best-known for its eponymous TV channels, which launched India's cable & satellite revolution in 1992. Just days ahead of Zee CEO Punit Goenka's 50th birthday on June 20, the company announced plans by the promoters to hike their stake in the company to over 18%. This was on June 16. The stock rose 4% a day after and analysts gave a thumbs-up to the promoters' proposed capital infusion of ₹2,237 crore into the firm.

But, much like the plot twists of its flagship channel's daily soaps, Zee has seen the tables turn since the June 16 announcement. Proxy advisory firms have asked shareholders to vote against the proposed promoter plan as a result of which Zee stock is down 4% in the last one week.

Clearly, Goenka, who is the face of Zee and had relinquished the position of MD in November last year to focus on rebuilding Zee in the wake of its failed merger with Sony, faces a litmus test. A shareholder vote on the promoter proposal to increase stake in Zee is scheduled for July 10 and the unified stand by proxy advisory firms, including Stakeholders Empowerment Services (SES), InGovern, and Institutional Investor Advisory Services (IIAS), hardly bodes well for the company.