Shares of Zee Entertainment Enterprises Limited (ZEEL) trimmed most of its early losses and ended nearly 2 per cent lower on Friday.

In a major relief to media firm ZEEL, the National Company Law Appellate Tribunal (NCLAT) on Friday stayed the insolvency proceedings initiated against it earlier this week.

The stock ended 1.58 per cent lower at Rs 195.60 apiece on the BSE. During the day, it declined 4.60 per cent to Rs 189.60.

On the NSE, it settled at Rs 195.45 each share, lower by 1.61 per cent after falling 5.36 per cent to Rs 188 during the day.

In volume terms, 10.91 lakh shares of the firm were traded on the BSE and over 3.73 crore shares on the NSE during the day.

Shares of Zee Entertainment had declined over 3 per cent on Thursday.

Admitting a petition filed by ZEEL Managing Director and Chief Executive Officer Punit Goenka, the appellate tribunal issued notices to private sector lender IndusInd bank and the interim resolution professional directing them to file a reply in two weeks.

NCLAT said the submissions made by both sides need a detailed hearing.

On Wednesday, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings and had appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter.

The matter pertains to a default of Rs 89 crore by Essel Group's multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.

The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India's biggest media empire.

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