Sun TV scrip zooms on Maran flying out of SpiceJet

Sajee

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MUMBAI: With Kalanithi Maran exiting the
loss-making aviation business SpiceJet,
investors on Friday pounced on Maran’s
broadcasting company Sun TV.
Shares of Sun TV jumped 11.32 per cent to
close at Rs 418.05 apiece on Friday after
touching an intraday high of Rs 424.90 per
share.

On Thursday, after market hours, the low-
cost carrier said that its co-founder Ajay
Singh will take control of the company and
Sun Group chairman Kalanithi Maran and Kal
Airways will transfer the ownership,
management and control.

One of the major concerns of the investors
was that Maran could use cash from Sun TV
Network to fund the cash-strapped airlines.
However, given the restructuring scheme,
analysts feel that issue has been sorted.
A few brokerage firms are positive on Sun
TV. Credit Suisse has maintained
‘outperform’ rating on Sun TV and has kept
it as its top pick in the media category.
“With Sun TV’s promoters selling out of
SpiceJet, one key overhang gets removed as
there were concerns promoters would use
Sun to fund the airline,” it said.

However, all is not well yet for the Marans
and they are under investigation in
connection with the money laundering probe
in the Aircel–Maxis deal. Earlier in
December, the Enforcement Directorate (ED)
had questioned the Maran brothers, which
had resulted in the Sun TV share price
crashing by 10.7 per cent in one day.

In the case which was filed by the CBI in
2011, the investigation agency had alleged
that the Marans had used their clout to help
Malaysian business tycoon T Ananda
Krishnan to acquire telecom company Aircel
by creating pressure on its owner
Chinnakannan Sivasankaran.

In July, Attorney General Mukul Rohtagi had
said that the CBI had enough evidence to
file chargesheet against the Marans.

Sun TV scrip zooms on Maran flying out of SpiceJet | TelevisionPost.com
 
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