Shares of Sun TV Network Ltd closed 1.05% lower at ₹605.75 on June 20, following reports of a legal conflict between its promoters—brothers Dayanidhi Maran and Kalanithi Maran—over the company’s shareholding structure. However, the stock managed to recover from its intraday lows after the company clarified that the issue was a personal matter and had no bearing on its business operations.
According to a report by Moneycontrol, former Union Minister and DMK MP Dayanidhi Maran sent a legal notice to his elder brother Kalanithi Maran, who is also the Chairman of the Chennai-based media conglomerate. The notice accuses Kalanithi of “fraudulent practices” including “cheating and money laundering,” and demands the restoration of the company’s original shareholding structure from 2003, invoking the legacy of their father, Murasoli Maran, and their mother, Mallika Maran.
Sun TV Network responded to the reports with an exchange filing, stating: “The matters alleged in the articles do not have any bearing on the business of the Company or its day-to-day functioning and being the family matter of the Promoter are purely personal in nature.”
The legal notice alleges that after the death of their father in 2003, shares were transferred to Mallika Maran without valid documentation, such as a death certificate or legal heir certificate, which were reportedly issued only later. This transfer, the notice claims, enabled Kalanithi Maran to subsequently acquire shares.
On September 15, 2003, Kalanithi allegedly allotted 12 lakh equity shares to himself at ₹10 each—a move the notice calls an “illegal act of criminal breach of trust and cheating.” At the time, the shares were reportedly valued between ₹2,500 and ₹3,000 each. Prior to the allotment, Kalanithi did not hold any shares in the company. The notice claims that the move shifted the ownership balance dramatically, reducing the family’s collective share from 50% each to just 20%.
Further, the notice accuses Sun TV of providing misleading information in its Red Herring Prospectus (RHP) filed in 2006. It alleges that the RHP falsely claimed a dividend payout of ₹10.64 crore to Mallika Maran by December 31, 2005—an amount the notice claims was never paid through the dividend route.
As of now, Kalanithi Maran holds a 75% stake in Sun TV Network and is among India’s wealthiest individuals, with an estimated net worth of $2.9 billion.
Despite being a major player in the Indian media landscape, Sun TV’s stock performance has been underwhelming, falling over 21% in the past year. The company’s market capitalization stands at approximately ₹24,000 crore. The stock’s 52-week high is ₹921, while its 52-week low is ₹549.30.
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Source: Moneycontrol.
