ED effect: Sun TV shares nosedive 10%, market cap erodes by Rs 1,688 cr

[Deepu]

In an expected move, shareholders of southern broadcast major Sun TV Network reacted sharply to the news of the attachment of some of company’s assets by the Enforcement Directorate (ED). Sun TV scrip saw over 13 per cent drop on the National Stock Exchange (NSE) and an 11.36 per cent dip on the Bombay Stock Exchange (BSE) on Monday, one of its worst one-day selloffs echoing the investors’ sentiments. The company, in one day, has seen erosion of its market cap by Rs 1,688 crore (Rs 16.88 billion) to Rs 16,196.88 crore (Rs 161.97 billion).

Read more at: http://www.televisionpost.com/television/ed-effect-sun-tv-shares-nosedive-10-market-cap-erodes-by-rs-1688-cr/ | TelevisionPost.com

 

[DashMajor]

Bad days of SUN are just started.

 

[NinadG]

"Last Wednesday, the ED had seized assets worth Rs 742.58 crore (Rs 7.43 billion) under the provisions of the Prevention of Money Laundering Act (PMLA). The assets seized included freehold land and buildings owned by Sun TV Network worth Rs 266 crore (Rs 2.66 billion).

The CBI filed a case in 2011, alleging that Dayanidhi Maran and Kalanithi Maran, the promoter of Sun TV, had used their clout to help Malaysian business tycoon T Ananda Krishnan to acquire telecom company Aircel by pressuring its owner Chinnakannan Sivasankaran to sell his stake.

It had said that as union telecom minister, Dayanidhi misused his office in 2006 to cause the sale of Aircel to Maxis Group. Maran was accused of being paid ‘illegal gratification’ worth over Rs 700 crore (Rs 7 billion), a part of which was invested in Sun Direct, the DTH arm of the Sun group owned by Dayanidhi’s brother and CMD of Sun TV Network, Kalanithi."

 

[NinadG]

It will be difficult for Sun companies to arrange for working capital to run the company day by day.
especially considering relationship of ADMK with ruling BJP at centre & coming elections in TN.....