TN election results impact two Chennai companies
11 May 2006
Chennai: Fortunes of two NSE listed corporates — Sun TV Limited and Radaan Mediaworks India Limited — are directly linked to the results of the Tamil Nadu assembly elections.
Kalanithi Maran, the son of late union minister Murasoli Maran and the grandson of the DMK chief M Karunanidhi has promoted Sun TV. He is also the elder brother of union Communications and IT minister Dayanidhi Maran.
As soon as the DMK alliance's victory in the Tamil Nadu state assembly elections seemed clear, the Sun TV scrip flared up at the bourses on May 11, 2006. At the national stock exchange (NSE) the share opened at Rs1,557.95 — the previous day's closing price was Rs1,481.30 - and went up to Rs1,620. However, the scrip closed at Rs1,416.
The scrip that might be affected by the election verdict is that of Radaan Mediaworks. The company has promoted by R Radhikaa, wife of DMK's MP Sarath Kumar. Just before the state elections, the couple had switched their loyalties to Jayalalitha's ADMK. The switch had aroused much interest as the channels under Maran's Sun banner air most of Radaan's programmes. According to reports Radaan, it is estimated, stands to lose around Rs5 lakh per day if the Sun TV network pulls the plug on these programmes.
When asked about the possible impact on Radaan because of their political decision, the couple said that Radaan and Sun TV are independent companies run by their respective boards.
On May 11, 2006, the Rs2 face value Radaan scrip opened at Rs7.50 after yesterday's closing of Rs7.45. They closed at Rs7.15 today. During the course of the day the scrip changed hands for Rs6.90. Their seemed to be more sellers for the company's shares today; while 85,437 shares were bought, 126,763 shares were put up for sale.