Sun TV Network shares plunge 25% on clearance issue

Shares of Sun TV Network declined around 25 per cent in the early trade on Monday after the news that Home Ministry declined security clearance to 33 channels of Kalanithi Maran promoted Sun TV Network.

According to reports, charges of systemic corruption, operating an illegal telephone exchange and money laundering are the reasons for declining security clearance to the Sun TV Network.

At 9.50 am, Sun TV Network shares were trading at Rs 267.30, down 24.99 per cent against its previous close. The share price of the company opened at Rs 320.75 and touched a low of Rs 258, so far.

For the year ended March 2015, the company reported consolidated net profit of Rs 782.59 crore, up 5.01 per cent against Rs 745.22 crore last year.

Sun TV is world's no 1 Tamil channel that features movies, news, serials and shows - 24 hours a day.

ICICI Securities in a research report said, "We would advise investors not to enter into any new positions until further clarity on the business continuity emerges. Though the operational performance remains at par, the promoter concerns have been overshadowing the stock."

Sun TV Network shares closed at Rs 278.90, down 21.73 per cent against its previous close.