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Sun TV scrip zooms on Maran flying out of SpiceJet
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.