CHANDRA STEPS DOWN AS ZEE CHAIRMAN

MUMBAI: Four days after selling a stake in India’s largest listed television network, Subhash Chandra, who founded Zee Entertainment Enterprises Ltd (ZEEL) in 1992, has stepped down as chairman of the company, paving the way for the company’s transition to an institutionally managed entity.

Chandra will, however, continue as a non-executive director on the company’s board, while his son Punit Goenka will continue as managing director and chief executive officer of ZEEL. The company is yet to announce who will replace Chandra as chairman.

On November 21, a clutch of institutional investors bailed out the promoters of ZEEL by buying a 15.7% stake in the company, helping Chandra repay lenders more than₹11,000 crore of promoter debt. Post the share sale to several institutional buyers such as GIC and Blackrock, the shareholding of Subhash Chandracontrolled holding companies stood at about 5%. “In light of the changes in shareholding, Mr. Subhash Chandra has expressed his intention to resign as chairman of the board with immediate effect. The board accepted his resignation and noted that this is in line with the requirements of Regulation 17 (lB) of Sebi Listing Regulations, which inter alia mandates that the chairperson of the board shall not be related to the MD or the chief executive officer of the company,” the firm said in its stock market filing.

“While Shri Chandra stepped aside from the chair, he also expressed the desire to step aside as a board member,” the release said. “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.”