A prominent media stock grabbed investor attention on Friday after reports surfaced of a high-profile legal feud between two influential brothers, sparking concerns around promoter stability and corporate governance.
With a market capitalisation of Rs 23,300 crore, shares of Sun TV Network tanked over 5% on Friday, trading at Rs 582 apiece compared to the previous close of Rs 612.15, amid concerns over promoter-level tensions.
Sun TV Network’s shares were in focus on Friday, June 20, after news emerged of a deepening legal feud between the Maran brothers, DMK MP Dayanidhi Maran and Kalanithi Maran, the billionaire businessman who currently holds a 75% promoter stake in the company. At current market prices, Kalanithi Maran’s stake is valued at approximately Rs. 18,000 crore.
Dayanidhi Maran reportedly sent a legal notice on June 10, threatening civil, criminal, regulatory, and enforcement action unless the shareholding structure of Sun TV is restored to its original form from 2003.
This is the second such notice, following a previous one in October 2024. The latest notice accuses Kalanithi Maran of engaging in fraudulent practices, including allegations of cheating and money laundering.
Public shareholding in the firm stands at 25%, with domestic mutual funds collectively holding 9.74%. Among the notable institutional investors are Quant Active Fund (4.7%), Kotak Equity Opportunities Fund (2.2%), and ICICI Prudential Exports and Services Fund (1.95%), as per the March 2025 quarter shareholding data.
Sun TV Network is the largest media conglomerate in India with 37 TV channels in 7 different languages. Their reach extends to more than 140 million Indian households. Furthermore, Sun TV Network’s channels can be viewed across 27 countries, including the USA, Canada, Europe, Singapore, Malaysia, Sri Lanka, South Africa, Australia, and New Zealand.
Coming into financial highlights, Sun TV Network’s revenue has decreased from Rs. 4,282 crore in FY24 to Rs. 4,015 crore in FY25, which has declined by 6.24 percent.
The net profit has also declined by 11.53 percent, from Rs. 1,926 crore in FY24 to Rs. 1,704 crore in FY25. The company has maintained a healthy dividend payout of 34.6 percent and. In terms of return ratios, the company’s ROCE and ROE stand at 20.4 percent and 15.7 percent, respectively.
Written By Rohan Pandey
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