Sun TV plunges after MHA denies security clearance to channels

Sun TV Network plunged 25.4% to Rs 265.85 at 10:50 IST on BSE after reports the Ministry of Home Affairs has struck down the proposal by the Information and Broadcasting Ministry for giving security clearance to company's 33 television channels.

Meanwhile, the BSE Sensex was down 105.20 points, or 0.39%, to 26,663.29.

On BSE, so far 7.54 lakh shares were traded in the counter, compared with an average volume of 59,671 shares in the past one quarter.

The stock hit a high of Rs 320.75, so far during the day. The stock hit a low of Rs 258, also a 52-week low for the stock. The stock hit a 52-week high of Rs 488 on 9 June 2014.

The stock had outperformed the market over the past one month till 5 June 2015, falling 0.27% compared with 2.45% decline in the Sensex. The scrip had however underperformed the market in past one quarter, declining 17.88% as against Sensex's 9.1% fall.

The large-cap stock has an equity capital of Rs 197.04 crore. Face value per share is Rs 5.

According to reports, Sun TV Network had applied to Information and Broadcasting Ministry (I&B) Ministry for renewing its broadcasting licence for 10 years, which required security clearance from the Home Ministry. The decision of denying security clearance to channels by the Home Ministry is influenced by pending criminal cases against Sun TV promoter Kalanithi Maran and his brother and former Union Minister Dayanidhi Maran.

Earlier on 1 April 2015, the Enforcement Directorate (ED) attached properties and shares worth Rs 742.58 crore of Sun TV promoter Kalanithi Maran, his wife Kaveri Kalanithi and his brother Dayanidhi Maran related to the Aircel-Maxis case.

The properties attached include Kalanithi Maran's shares worth Rs 139 crore in Sun Direct TV, free hold land and building owned by Sun Network TV worth Rs 266 crore, land and building owned by Kal Comm worth Rs 171.55 crore, fixed deposit held by Kalanithi Maran of Rs 100 crore, fixed deposit held by South Asia FM Ltd worth Rs 31.34 crore, fixed deposits held by Dayanidhi Maran and others for Rs 7.47 crore and fixed deposits and mutual funds held by Kaveri Kalanithi worth Rs 1.30 crore and Rs 1.78 crore each, report added.

In 2011, the Central Bureau of Investigation (CBI) in its chargesheet had noted that Dayanidhi Maran, when he was the telecom minister between 2004 and 2007, had entered into a criminal conspiracy against C Sivasankaran of Aircel and stalled approvals for spectrum licences to Aircel Ltd only to force him to sell his company to Malaysia's Maxis Communication which later invested in Maran's Sun Network group. The agency also alleged that the Rs 629-crore investment by Maxis in the Sun Network was part of the Rs 742 crore quid pro quo the Marans received for the Aircel deal.

Sun TV Network's net profit rose 2.7% to Rs 202.99 crore on 7.3% rise in total income to Rs 572.02 crore in Q4 March 2015 over Q4 March 2014.

Sun TV Network had its humble beginnings in 'Poomalai' - a monthly video magazine. Today, it grew upto India's largest television network which, power packed Thirty Two TV channels and Forty Five FM Radio stations in several Indian languages in infotainment covering movies, entertainment, music, documentary and news, each carries its own distinctive content and brand personality while collectively providing audiences a range of choice.

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