Mumbai, July 24: It’s payback time for Essel group promoters.
Keeping their word to shareholders, the Essel group promoters, led by Subhash Chandra, who had borrowed from two flagship companies — Zee Telefilms and Essel Propack — today repaid in full their dues by selling a small chunk of their stake in the entertainment major .
The Essel group promoters confirmed today the placement of 1.23 crore shares of Zee Telefilms amounting to 3 per cent of its equity with foreign institutional investors.
“Zee Telefilms Limited is going to receive the entire dues,” said Subhash Chandra, chairman of Essel Group of Companies. “In my interaction with shareholders, I had made a commitment of repaying the dues at the earliest,” he added. The only dues outstanding from the promoters to Zee were advances outstanding from Buddha Films Private Limited (BFPL).
Shares of Zee today fell marginally from yesterday's close of Rs 119.25 to Rs 117 as profit booking at the fag end took the sheen off intra-days gains.
The institutional investors who have purchased these shares are well-known international investors keen on Indian media and entertainment stocks with a long-term perspective, they added. Though these were business losses of Zee on account of marketing of cricket rights, the promoters of Essel Group had taken it on their own books, the company said.