Shares of Zee Entertainment jumped nearly 8 percent in morning trade on BSE on Tuesday, November 19. This comes a day after the company informed the exchanges that Punit Goenka has resigned as managing director of the company. However, he will continue to serve as CEO. Zee Entertainment’s stock rose from its previous Rs. 115.50 against a close of Rs. 118.05 and opened at Rs. It rose by 7.8 percent to 124.50.
“Punit Goenka has decided to relinquish his position as Managing Director of the company to fully focus on his operational responsibilities assigned to him by the Board. The company’s board of directors has accepted the resignation of Punit Goenka as the company’s managing director and appointed him as CEO,” the company said in an exchange filing on Monday, November 18.
Additionally, the company informed that Mukund Galgali, Chief Financial Officer, will also assume the role of its Deputy Chief Executive Officer. This change will be effective from November 18, 2024.
“To ensure that we maintain a sharp focus on achieving our target aspirations, core businesses require dedicated time and energy, which can only be achieved in an operational capacity. In the long-term interest of the company and all its stakeholders, I have approached the Board with a request to gain an operational focus as Chief Executive Officer. I am grateful to the board for recognizing my efforts and supporting me in this approach,” said Punit Goenka.
Goenka’s decision to step down as managing director comes just 10 days before the shareholders’ meeting, where he was set to seek approval for another five-year term as the company’s MD and CEO.
The 42nd Annual General Meeting of the company is scheduled to be held on Thursday, November 28.
While Goenka has stepped down as MD, shareholders will decide at the AGM whether he will continue on the company’s board as a director. To be reappointed, Goenka will need more than 50 percent of the shareholders’ votes in his favour.
On October 18, ZEEL announced its September quarter results, reporting a 70.24 percent jump in its consolidated net profit.
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