As DMK lost the Tamil Nadu state assembly elections to rival AIADMK, the shares of Kalanithi Maran-promoted Sun TV Network took a battering.

Shares of Sun TV closed Monday at Rs 394.60 on the BSE, down 3.81 per cent over the previous day's close.

Kalanithi Maran and his brother and former telecommunications minister Dayanidhi are grand nephews of DMK's M Karunanidhi, the chief minister who lost the polls to Jayalalithaa's AIADMK.

With J Jayalalithaa coming to power, Maran's cable TV distribution network business may come under the scanner. Jayalalitha-led AIADMK had promised in its 2011 election manifesto that it would abolish the monopoly of cable television in Tamil Nadu if voted to power.

Maran operates the cable TV business via SCV, which, unlike Sun TV Network, is an unlisted entity. SCV is a dominant player in the cable TV business.

Some media analysts, however, feel that the shares will bounce back after a temporary blip. "The Sun Network has tremendous innate strength. It has grown beyond political control. Earlier attempts to set up a state cable outfit has also failed," an analyst said on condition of anonymity.

Meanwhile, Kalanithi Maran has pledged 2.5 million shares of the company, valued at around Rs 1 billion.

With this, Maran's total pledging in the company now stands at 13.82 per cent.


Article from:
http://www.indiantelevision.com/headlines/y2k11/may/may116.php