Zee Shares Crash Over 14% After Lenders Move Against Subhash Chandra’s Plan

Shares of Zee Entertainment Enterprises fell over 14% on Monday, extending their decline to around 17% in four sessions, after the National Company Law Tribunal (NCLT) approved a repayment plan for Essel Group founder Subhash Chandra involving a 99.97% haircut on admitted creditor claims.

Zee shares fell to ₹86.90 apiece on the NSE, their lowest level since May. The stock was also on track for its sharpest single-day fall in nearly a month.

The decline came after Canara Bank, Union Bank of India and LIC Housing Finance said on Saturday that they would challenge the NCLT order approving Chandra’s repayment proposal. Under the plan, Chandra will pay around ₹6.25 crore against admitted creditor claims of ₹22,006.57 crore.

What Is The Subhash Chandra Case?

The NCLT order relates to Chandra’s personal insolvency resolution process in his capacity as a personal guarantor for debts owed by various Essel Group entities and related companies. It does not resolve corporate borrowings of Essel Group companies or mean that Chandra personally borrowed ₹22,000 crore.

When creditors voted on the repayment plan, those holding around 80.81% of the voting share supported it. Other creditors, including HDFC Bank and LIC Housing Finance, did not support the plan.

The plan cleared the required voting threshold under the Insolvency and Bankruptcy Code and was subsequently placed before the NCLT for approval. The tribunal then approved the plan, under which creditors would receive around ₹6.25 crore against admitted claims exceeding ₹22,000 crore.

Zee’s ₹2,640 Cr Fundraise Also In Focus

Separately, Zee Entertainment recently raised an initial ₹660 crore by allotting 20.94 crore fully convertible warrants to promoter group entity Sunbright Mauritius Investments at ₹126 apiece.

The allotment followed approvals from the company’s board, shareholders, stock exchanges and the Securities Appellate Tribunal (SAT). According to The Economic Times, the company could receive a further ₹1,980 crore upon conversion of the warrants, taking the potential total fundraise to ₹2,640 crore.

Despite the recent fundraise, Zee shares have fallen around 20% in the past month. The stock is up around 2% so far in 2026 but has declined 21% over the past year. Over three years, Zee shares have fallen around 65%, while the five-year decline stands at more than 46%.