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Writer's pictureBexley Advisors

<Nov 4, 19> Bexley Advisors Quoted in MoneyControl: "Zee Can Come on the Other Side with Strength"

Updated: Mar 30, 2020

.. Talking to Moneycontrol, Utkarsh Sinha, Managing Director of Bexley Advisors, a boutique investment bank, gave a break-up of the current pie of Zee stakes.


He said the promoters' share was 22.37 percent at the end of September, of which 96 percent was pledged to lenders.


"VTB has 11.66 percent. If the stake sale goes through then the Zee promoters will be left with less than half of what they had started off which is 10-11 percent of that eight to nine percent is pledged with Indian lenders," he explained.


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He added that there are two things that may make the prices not go down. “If the market feels that the promoter stake going down is a good thing. Or if there is news that it (Zee stake) is going to strategic. If that happens then the prices will go up and this will hold the interest of others who will try and get the maximum value from it,” said Sinha.


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"These are capital structure issues, and it is unfortunate that they have not been more proactively handled. If they are, even at this stage, Zee can come out on the other side with a strong future. If a fear based mentality prevails, however, it would be a most unfortunate run on the stock of a company with strong potential,” said Sinha.


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