In the past three days, the stock of Essel Group Company has plunged 19 per cent on reports that promoter Subhash Chandra was asked by a court to not sell his unpledged stake in the company till next month.
Thus far in September, ZEEL's share price has plunged 27 per cent, as compared to a five per cent rise in the S&P BSE Sensex. Investors have lost market wealth of Rs 9,840 crore in ZEEL so far in the month.
The Essel Group, which owns ZEEL, had reached an agreement in January under which the lenders agreed not to sell the company’s shares pledged with them till September 30 and gave Essel time to find a buyer for a portion of Chandra’s stake.
There were concerns after reports suggested that an order restraining Essel Group Chairman Subhash Chandra from selling his shares could impact the group’s future monetisation plans in ZEEL. CLICK HERE TO READ FULL REPORT