Zee Entertainment Enterprises Ltd. (ZEEL) chairman Subhash Chandra has stepped down on Monday from his position, days after the promoter Essel Group sold close to 16% of its stake in the open market that resulted in a reduction in the overall holdings of the group in ZEEL to 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,” ZEEL said in a statement to the exchanges, adding that the board accepted his resignation.
He will, however, continue as a non-executive board member, ZEE added in a statement.
Mr. Chandra founded the company in 1992 which went on to become one of India’s largest media and entertainment firms.
According to a press release and The Hindu, The board of ZEEL was also reconstituted with the appointment of three new independent directors in lieu of two independent directors and one nominee director of the Essel Group.
Newly-appointed board member R. Gopalan, former Finance Secretary, presided over the first board meeting of the reconstituted board. Apart from Mr. Gopalan, Surendra Singh, a retired officer of the Indian Police Service and Aparajita Jain, a professional with experience in contemporary arts, also joined the board.
“The reconstitution of the board was to provide a strong signal to existing and new institutional investors who have recently reposed their faith in the intrinsic value of the company, by investing ₹4,770 crores,” ZEEL added.