Mumbai: Shares of Sun TV settled with a sharp loss of nearly 22 percent Monday following reports that the Home Ministry has struck down a proposal to give security clearance to 33 television channels of the Kalanithi Maran-promoted firm.
After falling 27.59 percent to Rs 258 -- its 52-week low in intra-day trade -- shares of Sun TV Network finally ended with a loss of 21.73 percent at Rs 278.90 on the BSE.
At the NSE, the stock tumbled 21.81 percent to settle at Rs 278.65.
Following the sharp plunge in the stock, the company's market valuation dipped by Rs 3,051.98 crore to Rs 10,991 crore.
On the volume front, 19.88 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
"Sun TV plunged more than 27.5 percent after market rumours of Home Ministry striking down I&B ministry?s proposal of giving security clearance to 33 TV channels of Sun TV network," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.
Meanwhile, Sun Television Network today clarified that it has not received any communication from any ministry and all its channels continued to be on air.
The alleged striking down of the aforesaid proposal could lead to cancellation of Sun TV's broadcasting licence.
"We wish to state that no communication has been received by the company in this regard from any Ministry and all our channels continue to be on air", Sun Television Network said in a BSE filing.
The I&B Ministry has been informed about the decision of the Home Ministry, which is believed to have taken the stand due to pending criminal cases against Maran and his brother and former union minister Dayanidhi Maran, according to official sources.
A CBI probe pertains to the alleged allotment of 300 high-speed BSNL telephone lines to the residence of former Communications and Information Technology Minister Dayanidhi Maran in Chennai, which were extended to his brother's channel.
There are two other criminal cases against Sun TV Network and its owner Kalanithi Maran -- the Aircel-Maxis case being probed by CBI and one of money laundering handled by the Enforcement Directorate.
Meanwhile, the benchmark BSE Sensex close down by 245.40 points at 26,523.09 points.
