Zee Entertainment shares jump 6% after Rs 418 crore FDI approval

Zee Entertainment Enterprises (ZEEL) shares surged 5.60% to Rs 109.85 during Wednesday’s trading session after the company received government approval for a Rs 418-crore (around $46 million) foreign investment from OFI Global China Fund LLC, according to a report by The Economic Times, citing data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

The approval marks the return of the Invesco-managed fund to Zee Entertainment’s shareholder base, nearly three years after its high-profile exit from the media company.

According to DPIIT data, the investment was approved under the foreign direct investment (FDI) route for the acquisition of shares during the January-March quarter of FY26. The proposal was among 1,141 FDI proposals cleared by the department during the quarter.

Also Read | Zee Entertainment gets govt nod for Rs 418-cr investment from Invesco fund

The fresh investment comes at a time when Zee Entertainment is navigating a challenging phase in its core television broadcasting business. However, the company’s digital segment has shown signs of improvement, achieving operational profitability driven by cost optimisation and stronger revenue growth.

The development is significant given Invesco‘s previous exit from the company following a prolonged corporate governance dispute. In April 2023, OFI Global China Fund LLC sold its 5.11% stake in ZEEL through block deals worth around Rs 1,004 crore, offloading 49.1 million shares at Rs 204.50 per share.

FDI Inflows into Broadcasting Sector Rise

DPIIT data also showed that FDI inflows into India’s information and broadcasting sector increased 30.2% year-on-year to Rs 7,824 crore in FY26, compared with Rs 6,007.81 crore in FY25, reflecting continued investor interest in the sector.

On a quarterly basis, inflows remained largely steady. FDI during the January-March quarter stood at Rs 1,213 crore, slightly lower than Rs 1,222 crore recorded in the same period last year.

Stock Performance and Technical Outlook

Zee Entertainment has delivered a strong comeback on the bourses, with the stock rallying 36% over the past three months. The company currently commands a market capitalisation of Rs 9,942 crore, while its 52-week high stands at Rs 151.70.From a technical perspective, the stock is showing improving momentum. The 14-day Relative Strength Index (RSI) is at 48.5, indicating neutral momentum, with readings below 30 considered oversold and above 70 overbought.

The stock also maintains a positive technical bias, trading above six of its eight key simple moving averages (SMAs), suggesting underlying buying strength despite recent volatility.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)