Zee Entertainment’s strategic sale likely to be at premium, says CLSA

The strategic stake sale of Zee Entertainment Enterprises will likely be at a premium and may not see any management change post sale, said CLSA.

The foreign brokerage has retained a buy rating on the stock with a target price of Rs 670 as the stock is trading at a 15 per cent discount to 10-year average valuations.

Zee’s stock has rallied nearly 50 per cent since the January 2019 lows due to a potential strategic stake sale by promoters which will help the Essel Group deleverage.