Sun TV Share Price Falls Over 5% As DMK MP Dayanidhi Maran Sends Legal Notice To Brother Kalanithi Maran

Shares of Sun TV Networks Ltd. fell over 5% on Friday after DMK MP Dayanidhi Maran and former telecom minister sent a legal notice to brother Sun TV Chairman and Managing Director Kalanithi Maran amid a family dispute.

Sun TV, clarified that the reports are incorrect, misleading, speculative, and not supported by facts or law. "The matter dates back to 22 years when Sun TV was a closely held private limited company. All acts have been done in accordance with legal obligations," the company said in an exchange filing.

Dayanidhi Maran sent a legal notice to his brother Kalanithi Maran and alleged "fraudulent practices" and "misgovernance" in the Sun TV takeover. Kalanithi Maran is accused of committing a “series of calculated and coordinated financial crimes” including cheating and money laundering, during his tenure as chairman of Sun TV Network.

Dayanidhi threatens a serious fraud investigation office probe. Notice claims father Murasoli Maran died without a will. Notice calls for the restoration of Sun TV's shareholding to its 2003 levels and probes by SEBI, RBI, SFIO, ED, ROC, and other statutory authorities.

The dispute is regarding Sun TV shareholding post Father Murasoli Maran's 2003 death.

Kalanithi Maran is the majority shareholder of Sun TV Network with a 75% stake and a market capitalisation of Rs 24,124 crore.

Sun TV Network operates satellite television channels across seven languages – Tamil, Telugu, Kannada, Malayalam, Bangla, Hindi, and Marathi – and airs FM radio stations across India. It also owns the Sunrisers Hyderabad cricket franchise of the Indian Premier League and the Sunrisers Eastern Cape of Cricket South Africa's T20 League.

Sun TV Networks reported a 10.4% decline in consolidated profit after tax to Rs 371.77 crore during the March quarter. Its revenue from operations was down 2.15% to Rs 940.59 crore in the quarter from Rs 961.28 crore in the year-ago period.

Shares of Sun TV Networks fell as much as 5.25% to Rs 580 apiece. They pared losses to trade 3.41% lower at Rs 591 apiece, as of 9:21 a.m. This compares to a 0.19% advance in the NSE Nifty 50.

The stock has fallen 23.70% in the last 12 months and 13.87% year-to-date. Total traded volume so far in the day stood at 0.20 times its 30-day average. The relative strength index was at 46.80.

Out of 16 analysts tracking the company, seven maintain a 'buy' rating, six recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.2%.