Zee Entertainment shares climb nearly 5%

New Delhi: Shares of Zee Entertainment Enterprises Ltd surged nearly 5 per cent on Friday after shareholders of the firm rejected a proposal for the reappointment of Punit Goenka as a director of the company.

The stock climbed 4.83 per cent to settle at Rs 129.10 on the BSE. During the day, it jumped 7.67 per cent to Rs 132.60.

At the NSE, it went up 4.91 per cent to Rs 129.16.

The company's market valuation climbed Rs 571.52 crore to Rs 12,400.31 crore.

The resolution for the reappointment of Goenka was defeated in the 42nd Annual General Meeting (AGM) of the company on Thursday, according to Zee Entertainment Enterprises Ltd (ZEEL).

The proposal for the reappointment of Goenka as director, could get support of only 49.54 per cent of the total number of votes cast. While 50.4 per cent voted against the resolution in the AGM.

"Resolution No. 3 (Goenka's reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," ZEEL said.

The Companies Act, 2013, mandates a simple majority of (50 per cent plus one) votes to pass an ordinary resolution at an annual general meeting.