Sun TV Network rallies on signing pact with Arasu Cable

The company will now start earning additional subscription revenues from Tamil Nadu

Sun TV Network has rallied 6% to Rs 275 on signing agreement with the state-owned Tamil Nadu Arasu Cable TV Corporation Ltd, which help the company to generate additional subscription revenues.

“The company has concluded an agreement with Tamil Nadu Arasu Cable TV Corporation Ltd., an undertaking owned by the Government of Tamil Nadu engaged in the business of providing signals to cable operators in the state of Tamil Nadu,” Sun TV Network said in a filing.
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The new arrangement will facilitate in further enhancing the competitive positioning of the company's extremely popular programming. The company will also now start earning additional subscription revenues from Tamil Nadu, it added.

 

This agreement will enable the total availability of the company's channels on all cable TV distribution systems run by Arasu Cable across the state of Tamil Nadu with immediate effect.

The stock opened at Rs 260 and hit a high of Rs 277 on the National Stock Exchange, after the announcement. A combined 3.65 million shares have already changed hands on the counter so far, against an average around three million shares that were traded daily in past two weeks.