Sun TV Network gains as HC allows Group to bid in FM radio auction

The stock was up 4% at Rs 291 after the Delhi HC allowed Red FM to participate in phase-III of the FM radio e-auction.

Sun TV Network stock was trading up 4% at Rs 291 on the BSE in otherwise weak market today after the Delhi High court allowed Red FM to participate in phase-III of the FM radio e-auction.

The stock opened at Rs 295 and touched high of Rs 297 on the BSE. Till 10:35 AM, a combined 1.54 million shares changed hands on the counter on the BSE and NSE.

In past three trading sessions, the stock has rallied 13% from Rs 259 on July 22, as compared to 2.5% fall in the S&P BSE Sensex.

The court quashed the government’s July 15 decision not to give security clearance to the channel. 

A bench, consist of Justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva, allowed Digital Radio Broadcasting Ltd, which runs Red FM, to participate in the e-auction. 

Digital Radio is part of Maran owned Sun Group, which collectively runs 45 radio stations across the country.

"We quash the decision communicated by letter dated July 15, 2015, denying security clearance to the petitioner companies. The said petitioner companies (Digital Radio Broadcasting Ltd of Delhi and Mumbai) shall be entitled to participate in the e-auction subject to other conditions being fulfilled," said the Bench in a special sitting.