Shares of Zee Entertainment Enterprises Ltd on Thursday surged over 10% after Subhash Chandra-led Essel Group said it will sell 16.5% in the company to financial investors to repay debt. Of the total stake sale, Essel group will sell about 2.3% in Zee Entertainment to OFI Global China Fund, LLC and/or its affiliates.

Following this, Chandra will lose controlling interest in ZEEL.

At 1230 pm, the ZEEL stock was over 10% higher at ₹338.50 per share on the NSE.

About 60 million shares had been traded on the NSE till noon.

On 5 November, Mint reported that Chandra was in talks with lenders to retain control of ZEEL as a clutch of asset managers, non-bank lenders and foreign portfolio investors, which had extended loans to Zee’s promoter group companies against share pledges, planned to put their pledged shares in an escrow account in preparation for a sale. The lenders had initiated discussions with potential bidders, including strategic investors, to sell the bulk of the pledged shares.