Sun TV share price falls on 2G probe fears

The Sun TV and SpiceJet shares fell on the bourses on Thursday amidst speculation that Union textiles minister Dayanidhi Maran could be entangled in the 2G spectrum allocation scam probe. Sun TV share price fell by 27.90 per cent to settle at Rs 272.10 on the BSE. SpiceJet’s share price also fell by 16.06 per cent to close at Rs 34.50 on the BSE.

Sun TV, the flagship company of the Maran family, is controlled by Union Textiles Minister Dayanidhi Maran’s elder brother Kalanithi Maran. SpiceJet was last year acquired by the Marans for over Rs 750 crore.

Sun TV share price falls on 2G probe fears

Sun TV had in 2010-11 reported a net profit of Rs 772 crore on sales of Rs 1,924 crore. It is one of India’s biggest TV networks running 20 TV channels. The SpiceJet stock also flew into bad weather and closed with a loss of 16.06 per cent at Rs 34.50. During the day, the stock hit its 52-week low of Rs 33.50. Its 52-week high was on November 8, 2010 at Rs 97.45. In 2010-11, SpiceJet reported a net profit of Rs 101 crore on revenue of Rs 2,879 crore. The Marans have chalked out an ambitious growth plan for the airline and are to induct new aircraft.

Sun TV share price falls on 2G probe fears

Kalanithi is one of India’s highest paid corporate executives and among India’s top high net worth individuals (HNI). Kalanithi, along with his wife Kavery (joint managing director in Sun TV), took home Rs 74.16 crore (Rs 37.08 crore each) as salary and allowances in 2009-10. As an HNI, Kalanithi has personally invested in SpiceJet, though brother Dayanidhi does not figure anywhere in the family’s business.

Sun TV share price falls on 2G probe fears

Dayanidhi, as former telecom minister, is accused of favouring Malaysia’s Maxis Communication to take control of Aircel, then owned by maverick businessman C. Sivasankaran, and then allotted spectrum in 14 circles at 2001 rates allegedly for personal gains. Dayanidhi has vehemently denied these allegations.