The Mumbai bench of the National Company Law Tribunal (NCLT) approved the merger between Zee Entertainment ltd (ZEEL) and Sony Pictures on Thursday, various TV news channels reported. Shares of the Indian media conglomerate witnessed a huge surge in their prices. 

Shares of Zee Entertainment jumped after the announcement and settled the day at Rs 281.45, up 16.18% from the previous closing price on the National Stock Exchange (NSE). Before the news broke out, the stock traded sideways for most of the trading session on Thursday. 

The NCLT approval comes after a long delay since the announcement of the $10 billion Zee-Sony merger in 2021. The combined strengths of the two companies may lead to synergies that can foster growth and efficiency in their operations. The merger is a relief for Zee and is expected to benefit the stakeholders. 

ZEEL also recently announced its results for the April-June quarter of FY24. It reported an 8% year-on-year (YoY) growth in revenue at Rs 1,984 crore against Rs 1,843 crore in the year-ago period.

NCLT approved the proposed merger, dismissing all objections related to the case. Sony and Zee will merge their television channels, film assets and streaming platforms. Analysts believe that the merger would be a key monitorable for the stock.