Zee Entertainment share price plunged over 14 percent in intraday trade on BSE on April 13 and looked on course to break its winning streak of the last four consecutive sessions.
In a BSE filing on April 9, the company said that the board at a meeting held a day earlier agreed to extend financial and operational support to SugarBox, a company in which Zee acquired 80 percent stake in 2017.
Zee had acquired an 80 percent equity stake in Margo Networks Private Limited (“SugarBox”) in 2017. As per the regulatory filing, this investment was made to exploit synergies of the technology developed by SugarBox with the company’s business and to significantly augment the digital content consumption.
Now, Zee will invest Rs 522 crore in its arm, Margo Networks Pvt Ltd, which offers content distribution services under ‘SugarBox’ brand that empowers users without an active internet connection to use mobile apps.
ZEEL will provide operational support, including through providing performance and corporate guarantees as appropriate and necessary, and has authorised SugarBox to finalise the terms of 10 years contract with RailTel Corporation of India Ltd, it added.
Shares of Zee Entertainment were trading 10.50 percent down at Rs 134.20 on BSE at 1415 hours.
News source:- moneycontrol