Sun TV Networks Crashed

Sun TV has seen one of the worst one-day selloff on its share as the price has crashed almost 26 per cent and touched a 52 Week Low from Rs. 320.75 to 258.00 in BSE. This article contains the reasons for the sudden crash.

Reasons for the Crash:

According to Press Trust of India, the home ministry has struck down a proposal by the information and broadcasting ministry for giving security clearance to 33 television channels of Sun TV Network. The decision was taken because of pending criminal cases against Mr Maran and his brother and former Union Minister Mr Dayanidhi Maran, PTI said citing sources in the ministry.Mr. Kalanithi Maran is a promoter of the company and holds almost 75 per cent of the stake in Sun TV Networks.

CBI is asking for proofs from the Maran brothers over alleged allotment of 300 high-speed BSNL telephone lines to the residence of former Communications and Information Technology Minister Mr Dayanidhi Maran in Chennai that were used for his brother's channel.

There are two other pending criminal probes against Mr Maran and Sun TV Networks - CBI's Aircel-Maxis deal of 2006. According to CBI, Mr Dayanidhi Maran, as Union Telecom Minister, misused his office to engineer the sale of telecom Aircel to Malaysia's Maxis Group in 2006  and came under an Enforcement Directorate case of money laundering.

Earlier, the Home Ministry denied security clearance to Sun Network run 40 FM radio stations in April, seeking a review of the decision. However, there has been no change in Home Ministry's decision.

Sun Network had already moved the Madras High Court seeking interim relief in the Sun FM matter and the court has granted it a stay till the petition is disposed of. It is expected to move the court again in the Sun TV Network issue.

Decision to cancel Sun TV's security clearance will be a big blow for the company, as it is the number one broadcaster in the four south Indian states of Andhra Pradesh, Kerala, Tamil Nadu and Karnataka.

Meanwhile, SL Narayanan, Group CFO, Sun Group has informed to the media that they have not received any verbal or written communication from the ministry of Home Affairs on the issue of security clearances. Mr Narayanan also added that they have got security clearances till 2021 and 2023 for most of the channels.

About the company

Sun TV Network, India's largest media Conglomerate has power packed Thirty Three TV Channels with the reach of more than 95 million households in India. SunTV Network's channels can be viewed in 27 countries including U.S.A, Canada, Europe, Singapore, Malaysia, Srilanka, South Africa, Australia and New Zealand.