Sun TV slumps on buzz CBI set to file FIR against Maran brothers

Sun TV Network tumbled 6.01% to Rs 247 at 15:30 IST on BSE on reports the Central Bureau of Investigation is set to file FIR against former telecom minister Dayanidhi Maran and his brother Kalanithi Maran for their role in the Aircel case.



Meanwhile, the BSE Sensex was up 242.41 points, or 1.47%, to 16,688.43.

On BSE, 2.67 lakh shares were traded in the counter compared with average volume of 1.15 lakh shares over the past two weeks.

The stock hit a high of Rs 260 and a low of Rs 237.75 so far during the day.

The stock has fallen 17.95% in seven trading sessions from a recent high of Rs 301.05 on 20 September 2011.

According to reports, Dayanidhi Maran is accused of coercing C Sivasankaran to sell his entire stake in Aircel, a mobile service provider, to Malaysia-based Maxis group. The Central Bureau of Investigation (CBI) has alleged that Aircel's application for grant of spectrum was unduly delayed, frustrating Sivasankaran to sell his stake to Maxis.

As a quid pro quo for this favour, Maxis group made huge investments in Maran's family business, Sun Network, which was headed by Kalanithi, CBI reportedly alleged.

Meanwhile, viewership of Sun TV, although still one of the highest among Tamil general entertainment channels, reportedly slipped to 63.9% last week from 66.9% two months ago, according to the latest data from TAM Media Research.

Reports suggested that the decline in viewership followed the revival of a discounted state-run cable business, Arasu Cable TV Corp by Tamil Nadu chief minister J. Jayalalithaa aimed at ending Maran's Sun Cable Vision's near monopoly in the state. Arasu Cable began airing pay channels a few days ago without Sun's popular bouquet of channels.

Shares of Sun TV Network have been under pressure since May this year after DMK lost the Tamil Nadu state assembly elections to rival AIADMK. Kalanithi Maran, promoter of Sun TV and his brother Dayanidhi, former Textiles minister, are grand nephews of the DMK supremo M Karunanidhi. Jayalalithaa, which runs Jaya TV channels, swept the Tamil Nadu state polls with more than four-fifths majority on 13 May 2011.

The Sun TV stock has fallen 39.79% from Rs 410.25 on 13 May 2011, when the state poll results were announced.

Sun TV Network's net profit rose 9.8% to Rs 187.62 crore on 3.1% increase in net sales to Rs 453.99 crore in Q1 June 2011 over Q1 June 2010.

Sun TV operates and owns 20 television channels in four languages in south India. It also produces and distributes films and owns and runs FM radio stations.