Stock Market

Sun TV tanks 12%, Raj TV soars 20% on AIADMK win in Tamil Nadu

Chillicious Team

Shares of Sun TV tumbled over 12 percent intraday on Thursday as AIADMK is all set to form government in Tamil Nadu for the second consecutive time. It was a direct contest between Chief Minister J Jayalalithaa’s AIADMK and DMK-Congress alliance for the 234-member assembly.

Meanwhile, Sun TV’s rival in the south Raj TV soared 20 percent intraday.

Chennai-based Sun TV owned by Kalanithi Maran (grandnephew of DMK President M Karunanidhi) had jumped 11 percent on Tuesday as most exit polls had predicted that the DMK-Congress alliance may win the state elections in Tamil Nadu.

In FY11 when DMK was in power, its ad revenue growth was at 23 percent which fell to -2 percent in FY12 when Jayalalitha became the Chief Minister. Thereafter, Sun TV’s ad revenue has never touched double digit growth except in FY13 hitting 11 percent. However, in FY14 ad revenue growth was at 1.6 percent. In FY15, ad revenue growth was at 6.5 percent.

At 11:23 hrs Sun TV Network was at Rs 381.30, down Rs 46.25, or 10.82 percent and Raj Television Network was  at Rs 72.00, up Rs 10.60, or 17.26 percent on the BSE.

Posted by Nasrin Sultana