Shares of Zee Entertainment climbed nearly 7% in opening trade on Tuesday after Punit Goenka resigned as the managing director of the company. However, he has been appointed as CEO to focus entirely on operational responsibilities, the media and entertainment company said in an exchange filing.
Goenka will continue to stay on the board as a director, subject to shareholder approval. The reason for his resignation from the position of MD was not disclosed in the exchange filing.
Reacting to the news, shares of Zee Entertainment Enterprises gained as much as 6.9% to ₹123.45, while the market capitalisation climbed to ₹11,761 crore. At the current level, the stock is trading 59% lower than its 52-week high level of ₹299.50 touched on December 12, 2023. The counter is up 8% against its 52-week low of ₹114.40 hit on November 13, 2024. In the last one year, the stock has fallen nearly 50%, while it lost over 16% in the past six months. In the calendar year 2024, the counter has lost 57%, while it dropped nearly 3% in a month.
In an exchange filing last evening, Zee Entertainment said, “Punit Goenka, Managing Director - Key Managerial Personnel of the Company, decided to relinquish his position as Managing Director of the Company to entirely focus on his operational responsibilities assigned to him by the Board on November 15, 2024.”
The board of directors of the company, in its meeting held yesterday, accepted the resignation of Goenka as MD of the company and appointed him as CEO – key managerial personnel of the company. The board has also approved to designate Mukund Galgali, chief financial officer - key managerial personnel of the company, as deputy chief executive officer of the company.
“Galgali will assume this role in addition to his profile as the chief financial officer of the company and will continue to report to the CEO, Punit Goenka. The appointment is effective immediately,” the release says.
The board has also advised the management to appoint a deputy chief financial officer to further strengthen the management team. “Further, the board is continuing the review of the company’s HR policies, processes and salary structures which were changed during the merger integration process.”
As per the regulatory filing, Goenka intends to dedicate his time entirely towards the future of the company by enhancing its performance and profitability levels in line with the direction given by the board in its meeting on November 15, 2024.
“Goenka’s approach stems from his enhanced focus towards the core business segments and the concerted efforts required to drive robust growth for the future in the interest of all its stakeholders. In line with the action-oriented steps implemented as part of his growth plan for the company, Goenka formed a new, lateral team structure,” the release notes.
The company says that Goenka aims to further enhance his presence in key operational markets to further tap into the pulse of the consumers and advertisers.
“The company remains on a firm footing and is taking all the necessary steps to build a robust foundation for its future. In order to ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy which can only be achieved in an operational capacity,” says Punit Goenka.
“In the long-term interest of the company and all its stakeholders, i have approached the board with a request to attain operational focus as the chief executive officer. I am grateful to the board for recognizing my efforts and supporting me in this approach,” he adds.
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