Media conglomerate Sun TV Network and low-cost air carrier SpiceJet nosedived on the bourses, amid reports that Dayanidhi Maran — the brother of the owner of both the companies — was named in a public lawsuit over the 2G spectrum scam.
Extending its initial losses, Sun TV plummeted by 27.90 per cent to settle at Rs 272.10 on the BSE. In intra-day trading, the stock plunged by 31.08 per cent to touch a 52-week low of Rs 260.10.
SpiceJet, which is owned and run by Kalanithi Maran, the brother of DMK leader and Union Minister Dayanidhi Maran, also dropped by 16.06 per cent to close at Rs 34.50 on the BSE. In intra-day trading, the scrip tumbled by 18.49 per cent to a year’s low of Rs 33.50.
“The entire condition of the market is so fragile that any negative news comes heavily for any stock. Both the stocks have witnessed free fall in today’s session,” Sharekhan’s head research Gaurav Dua said.
Brokers said sharp fall in both these stocks was mainly news-driven. Sentiments turned sour soon following the news of a Public Interest Litigation (PIL) filed against Dayanidhi Maran for his alleged role in the telecom scam. Worried investors sold heavily in the weak market, they said.
According to media reports, Maran family-owned Sun TV Network was a beneficiary of pay offs by an overseas telecom firm. The CBI has also started a “preliminary investigation” against Dayanidhi Maran.
As per the lawsuit, after Aircel was taken over by the Malaysia’s Maxis Communications, Sun TV received substantial investment from Maxis Group (Aircel) by taking 20 percent equity in Sun Direct.
Meanwhile, Mr. Maran has said he did not favour any company in granting UASL licence when he was telecom minister during 2004-07, even as political parties BJP and AIADMK have called for his resignation on this issue.