Sun TV gains ground; stock up 6%

Shares of Sun TV Network are trading higher by 6% to Rs 304 on the Bombay Stock Exchange (BSE) after the Madras High Court offered interim relief to the company and allowed the radio stations to continue to run. In all probability, the group will take recourse to similar appeals after the order is communicated officially.

Meanwhile, Ministry of Home Affairs (MHA) is likely to review its decision to withdraw security clearance given to 33 channels of Sun TV Network if a sound legal opinion could justify it that the grounds under which the permission was denied were not satisfactory. 

Earlier, the stock had cracked 22% after the Ministry of Home Affairs refused to renew the security clearances for the TV channels run by the media group. Sun TV is the number one broadcaster in the southern states and it runs 33 TV channels and 40 FM radio stations.

A security clearance is necessary from the home ministry to broadcast on TV or radio and the license needs to be renewed after every 10 years.

The Information and Broadcasting Ministry refused to provide security clearance for the TV channels on the grounds that there are cases filed against the chairman and managing director Kalanithi Maran and his brother Dayanidhi Maran.

The stock opened at Rs 293 and touched a high of 322 on the BSE. A total of 530,808 shares changed hands on the BSE so far.