Sun TV reception goes bonkers!

Sun TV is the top loser on the bourses currently. The stock is down by a jaw dropping 26% at Rs.265 compared to Friday’s close of Rs.356. And it hit a new 52-week low today at Rs.258.

This relentless beating down of the stock is happening because the Home Ministry has struck down the Information and Broadcasting Ministry’s proposal for giving security clearance to its 33 television channels. This means, stock company might see cancellation of their broadcasting licence. The Network had applied to the Information and Broadcasting Ministry for renewing its broadcasting licence for 10 years. The process required security clearance from the Home Ministry.

This decision was taken on account of the pending criminal cases against Mr. Maran and his brother and former Union Minister Dayanidhi Maran.

Naturally, the company will seek legal recourse and maybe hope for an intervention by the PM, which means he will over rule the Home Ministry, which at this juncture seems unlikely.