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The shares of Kalanithi Maran-controlled Sun TV Network on Monday ended nearly 22 per cent, or Rs 77, lower than their previous close on the National Stock Exchange (NSE), at Rs 279.5 apiece. The sell-off followed reports that the Union home ministry had struck down the information & broadcasting (I&B) ministry’s proposal for security clearance to 33 of the group’s television channels.
After opening at Rs 320.8 apiece, the shares slipped over 26 per cent in intra-day deals to hit a 52-week low of Rs 257.45 on NSE. By comparison, the NSE Nifty ended 0.9 per cent lower at 8,044. The stock recouped some of its losses after the company denied receiving any such communication. “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 TV told exchanges.
Approached independently for comment, Sun TV Group Chief Financial Officer S L Narayanan did not respond to calls and text messages.
On Saturday, a section of the media had reported that the home ministry did not clear the proposal to allow Sun TV to run these channels, given some pending cases against promoter Maran and his brother and former Union telecom minister, Dayanidhi Maran.
Narayanan told a TV channel that the company had not received any communication from any government department. “I am unable to comment, we need to wait for the rest of the day for more developments. “We are hoping the issue does not reach an abrupt end,” he said.
The Sun TV channels were watched by 54 million people in South India and 250 million people across the world, Narayanan claimed. “I would expect the government to gives us a fair hearing before it reaches a decision.”
“If pending investigation were to be the cause for action, I don’t think many networks would be able to do business in this country — almost every media house has some case pending in some court of law. It should not be something uniquely directed at Sun TV,” said Narayanan.
Reports suggest this might be the second major setback for Sun TV. The group was recently denied security clearance for 40 radio channels but the Madras High Court had granted a stay until the matter was disposed of.
As regards the company’s shares, analysts seem to be a little worried by the recent reverses. G Chokkalingam, founder & managing director, Equinomics Research & Advisory, said: “I don’t know whether the licences will be cancelled or not, and I will not go into the right or wrong of it. But this development will not go down well with the foreign institutional investors (FIIs). There is an issue with the promoters and I am not sure if a listed entity can be punished for this.”
Earlier, in April, the Enforcement Directorate (ED) had attached properties and shares worth Rs 742.58 crore of Kalanithi Maran, wife Kaveri Kalanithi, and brother Dayanidhi Maran, in a case related to the Aircel-Maxis deal. The petitions of Sun TV Network and Kal Communication seeking relief for two of these properties are under consideration of the Madras High Court.
The Central Bureau of Investigation (CBI) has alleged in the courts that Dayanidhi Maran used his influence as a minister to help T Ananda Krishnan, a Malaysian businessman, buy telecom services company Aircel, by coercing the erstwhile owner C Sivasankaran to part with his stake.
Sivasankaran openly alleged that Maran favoured Krishnan’s Maxis group in the takeover. He also alleged that Maxis made investments, through Astro Network, in a firm purportedly owned by the Marans.
