IDBI Bank Shares In Focus Today; Here’s Why

IDBI Bank shares remained on investors’ radar on Wednesday after the lender filed an appeal against the NCLT order giving consent of the merger of Zee Entertainment Enterprise Ltd. (ZEEL) with Clver Max Entertainment, earlier Sony Pictures Networks India. IDBI Bank has moved the National Company Law Appellate Tribunal (NCLAT) against the order.

IDBI Bank shares were spotted trading 1.14% higher at Rs 70.95 per share at 11:06 am IST on Wednesday (September 6).

Earlier, the Mumbai bench of the National Company Law Tribunal (NCLT) on August 10, 2023, to ZEE's $10 billion merger with Culver Max, which would create the largest media entity in the country.

The NCLT had dismissed the objections raised by lenders including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp.

Sony and ZEE had inked definitive agreements in December 2021. As per the deal, post the merger Sony will indirectly own a majority of 50.86% of the new entity, while the founders of ZEEL will hold 3.99%. Other ZEEL shareholders will own a 45.15% stake.

The lender is also contesting another matter against ZEEL before the NCLAT, in which the appellate tribunal is yet to reflect any filing from IDBI Bank.

In an exchange filing on Tuesday (September 5), Zee said, “The Company has been served with an appeal on behalf of IDBI Bank Limited against the Company before the NCLAT, Delhi, challenging the order dated August 10, 2023 passed by NCLT, Mumbai Bench, approving the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited).”

On Wednesday, the share price of Zee Entertainment was up 2.26% at Rs 281.10 per share at 11:15 am IST. In this year so far, Zee shares have gained 15.63%.