Market wary of rumours about Audit concerns | Zee denies
Zee Entertainment shares experience the worst dip in more than three months.
“We deny the rumours floating in the market relating to audit of the financial statements,” said the Subhash Chandra-led group company in an exchange filing.
- Zee shares tumbled 9.72 %, its lowest since Jan 2019.
- Zee shares dipped due to concerns over stake sale by its promoters and issues in audit of financial statements.
- Company said its board will consider the consolidated results for FY2018-19.
- Zee denied ‘market rumours’ and said the audit was very much in progress.
According to sources, in a regulatory filing, the company said it has been informed that “there are certain rumours floating in the market raising concerns about audit of the financial statements of the company for the fiscal year ended March 31, 2019.”
ZEEL stated the financial audit by Deloitte Haskins & Sells LLP was ‘very much’ in progress. Deloitte replaced MGB & Co LLP as Zee’s statutory auditor since FY2017-18.
ZEEL stock diluted almost 41 percent over the last 12 months
There are growing concerns among investors over the debt of promoter. Controlling shareholders Essel Group revealed plans to sell 50 percent stake to a strategic partner in November.
As per Essel Group, stake sale process of ZEEL was at an advanced stage, but did not disclose any details due to a confidentiality agreement.
Mutual funds agreed to a standstill with the Essel Group on debt and pledged shares.