Sun TV shares dip 22%; m-cap plunges Rs 3,052 cr

After falling 27.59 <g data-gr-id="38">per cent</g> to Rs 258 -- its 52-week low in intra-day trade -- shares of Sun TV Network finally ended with a loss of 21.73 per cent at Rs 278.90 on the BSE. At the NSE, the stock tumbled 21.81 <g data-gr-id="39">per cent</g> to settle at Rs 278.65.

Following the sharp plunge in the stock, the company’s market valuation dipped by Rs 3,051.98 crore to Rs 10,991 crore. On the volume front, 19.88 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day. “Sun TV plunged more than 27.5 <g data-gr-id="42">per cent</g> after market rumours of Home Ministry striking down I&B ministry’s proposal of giving security clearance to 33 TV channels of Sun TV network,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd. 

Meanwhile, Sun Television Network on Monday clarified that it has not received any communication from any ministry and all its channels continued to be on <g data-gr-id="35">air</g>. The alleged striking down of the aforesaid proposal could lead to cancellation of Sun TV’s broadcasting licence.

“We wish to state that no communication has been received by the company in this regard from any Ministry and all our channels continue to be on air”, Sun Television Network said in a BSE filing. 

The I&B Ministry has been informed about the decision of the Home Ministry, which is believed to have taken the stand due to pending criminal cases against. 

Maran and his brother and former union minister Dayanidhi Maran, according to official sources. 

A CBI probe pertains to the alleged allotment of 300 high-speed BSNL telephone lines to the residence of former Communications and Information Technology Minister Dayanidhi Maran in Chennai, which were extended to his brother’s channel. There are two other criminal cases against Sun TV Network and its owner Kalanithi Maran -- the Aircel-Maxis case being probed by CBI and one of money laundering handled by the Enforcement Directorate. Last fiscal, the company posted <g data-gr-id="46">profit</g> of Rs.737.23 crore on a total income of Rs.2,331.45 crore. This is the second time this fiscal the prices of Sun TV Network’s <g data-gr-id="44">scrip</g> has gone down sharply.

In April, the scrip’s price came down after the Enforcement Directorate (ED) said it has attached property worth some Rs.750 crore of Sun TV Network’s promoters in connection with the 2G case.