Subhash Chandra resigns as Zee Entertainment Chairman

Chandra will remain the company’s non-executive director, it added. (File Photo)

Zee group founder Subhash Chandra Monday resigned as the chairman of Zee Entertainment Enterprises Ltd (ZEEL), after the promoters offloaded around 16 per cent stake in the company last week to pay off debtors. However, he will continue as a director on the board of the company.

Chandra, who started the Zee TV network in 1992, expressed his intent to step aside as the Chairman of the company, which he founded way back in 1992, at the board meeting on Monday. “The board accepted his resignation with regret and applauded his vision for the company and the industry at large,” the company said in a stock exchange filing. While Chandra stepped aside from the chair, he also expressed the desire to step aside as a board member. “However, the entire board requested him to not only continue as a board member but also to be the ‘mentor’ to the executive management and its MD & CEO,” it said.

ZEEL shares fell by 3.98 per cent to Rs 343.65 on the BSE on Monday. Last week, Essel Group said it was planning to sell around 16.5 per cent stake in ZEEL to financial investors in order to repay loan obligations to certain lenders of the group for whose benefit such shares are currently encumbered.

Promoter ESSEL Media Ventures sold 69.4 million shares while Cyquator Media Services sold 61.6 million shares and ESSEL Corporate LLP sold 11.8 million shares via bulk deals at an average price of Rs 304 per share, according to the NSE data. Government of Singapore bought 28.5 million shares, representing 3 per cent stake, while Societe Generale bought 16.7 million shares or 1.73 per cent stake in ZEEL.