Sun TV Network shares fall after Dayanidhi Maran sends legal notice MD Kalanithi Maran

Shares of Sun TV Network fell as much as 5.25% to hit an intraday low of ₹580 on the National Stock Exchange after media reports suggested that DMK Member of Parliament Dayanidhi Maran sent a legal notice to his elder brother and Sun TV Network Chairman and Managing Director Kalanithi Maran, accusing him of fraudulently seizing control of the group after the death of their father, Murasoli Maran, in 2003.

In a legal notice Dayanidhi Maran has accused Kalanithi Maran and several others of fraudulent practices and misgovernance in taking control of Sun TV after their father's death in 2003. Dayanidhi also seeks to restore the company’s shareholding structure to its pre-September 2003 status, Mint reported.

This implies that Dayanidhi and his sister, Anbukarasi Maran, along with the current chief minister of Tamil Nadu, M.K. Stalin, and his two brothers and sister, would be the owners of Sun TV, as Kalanithi did not own any shares in the company 22 years ago, the Mint report added.

Meanwhile, Dayanidhi has warned that he would seek a probe by Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs.

Sun TV Q4 earnings

Sun TV Networks Ltd on Friday reported a 10.4% decline in consolidated profit after tax (PAT) to ₹371.77 crore during the March quarter.

The company had reported a PAT of ₹414.94 crore in the January-March period a year ago, according to a BSE filing Sun TV Network, one of the largest broadcasters in the country.

Its revenue from operations was down 2.15% to ₹940.59 crore in the quarter from ₹961.28 crore in the year-ago period.

As of 11:07 am, Sun TV shares traded 3.21% lower at ₹592.50 underperforming the NIFTY500 index which was up 0.91%.