The National Company Law Appellate Tribunal (NCLAT) has adjourned a hearing to October 31, 2023, regarding pleas from IDBI Bank, IDBI Trusteeship, and Axis Finance against the merger of Zee Entertainment and Culver Max Entertainment. The financial institutions including JC Flowers Asset Reconstruction Co and Imax have voiced their opposition to the merger that could potentially create India's largest media entity.
According to InvestingPro data, Zee Entertainment's revenue for the last 12 months (LTM2023.Q4) stood at $9.74 million, with a significant growth rate of 59.72%. Despite this, the company's quarterly revenue growth for FY2023.Q4 saw a decline of 73.06%. The data also reveals that Zee Entertainment operates with a Price/Earnings (P/E) Ratio of -16.25, indicating that the company is currently trading at a high earnings multiple.
The NCLAT has not issued notices for these petitions but has allowed Zee Entertainment to respond. The merger had previously received approval from the National Company Law Tribunal (NCLT) Mumbai on August 10, 2023. During the approval process, the NCLT dismissed some applications moved by these opposing institutions.
The objections from IDBI Bank, a private lender, IDBI Trusteeship, and Axis Finance, a non-banking financial company (NBFC), add another layer of complexity to this high-stakes merger. The outcome of the October 31 hearing will provide further clarity on the future of this potential media giant.
Interestingly, Zee Entertainment is a prominent player in the media industry, as highlighted by InvestingPro Tips. The company has shown a strong return over the last three months and has seen a large price uptick over the last six months. Despite a declining trend in earnings per share and weak gross profit margins, analysts predict the company will be profitable this year. It's worth noting that Zee Entertainment has maintained dividend payments for 22 consecutive years, a sign of its financial stability. For more insights like these, consider exploring the additional tips available on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.