Shemaroo Entertainment tanks 5 per cent
The stock of Shemaroo Entertainment Limited dipped on the back of a news report that claimed that an FIR has been registered against the management and directors of Shemaroo and Viacom 18 Media. Owing to this, the stock plunged on Friday.
An FIR has been registered against the management and directors of Viacom 18 Media Private Limited and Shemaroo for allegedly hosting and streaming multiple films on its digital platforms Voot without any permissions or a valid license from the owners/producers of such films, said a report in a leading newspaper. The report said that the two companies have committed fraud by illegally hosting these films and were earning Ad revenue and profit for such content.
Shemaroo Entertainment Limited is a renowned content creator and distributor in the Indian media and entertainment industry. Viacom 18 Media Private Limited is a joint venture between Viacom and TV18. Voot is a video on-demand platform of Viacom18.
Replying to the clarification asked by the exchange, Shemaroo Entertainment Limited refused to comment as they have not received any formal communication from the police or a copy of the FIR. The company said it is premature to respond at this stage and will issue a communication once a certified copy of FIR is received.
However, the market reacted sharply to this development and the stock of Shemaroo Entertainment dropped of 5.20 per cent compared to the previous closing price of Rs. 381.85, on Friday. The 52-week high of the stock is Rs. 530 and 52-week low is Rs. 325 on BSE. The stock of TV18 Broadcast Limited. also saw a decrease of 3.94 per cent and was trading at Rs. 28.05 per share.