New Delhi | Shares of Sun TV Network tumbled over 5 per cent in intra-day trade on Friday before recovering most of the lost ground to end 1 per cent lower amid concerns over a rift between brothers Dayanidhi and Kalanithi Maran.
According to reports, Dayanidhi has sent a legal notice to his brother and several others, accusing them of "fraudulent practices" and "misgovernance" in taking control of Sun TV after their father Murasoli Maran's death in 2003.
The stock of Sun TV dropped 5.20 per cent to Rs 581.55 during the day on the BSE. Later, it ended at Rs 606.80, down 1.09 per cent.
On the NSE, shares of the firm tanked 5.25 per cent to Rs 580 during the day. The stock later ended at Rs 605.75 apiece, a decline of 1.04 per cent.
A day after reports emerged of former Union minister Dayanidhi Maran accusing his brother of "fraudulent practices" and "misgovernance", the elder sibling Kalanithi-run Sun TV on Friday said the division between the promoter family done 22 years back was in compliance with all legal obligations.
Defending its promoter Kalanithi, Sun TV Network in a regulatory filing said the agreements between the two brothers had been "duly vetted" by "intermediaries" concerned before the company's public issue.
The board of Sun TV Network is led by Kalanithi as Executive Director and Chairperson.
Kalanithi, as a promoter, owns 75 per cent shareholding in Sun TV Network.
Sun TV Network said, "The alleged matter dates back to 22 years, when the company was a closely held private limited company".
Defending the promoter, it further stated, "Statements allegedly made in the articles are incorrect, misleading, speculating, defamatory and not supported by facts or law".
"We wish to inform that all acts have been done in accordance with legal obligations and the same had been duly vetted by concerned intermediaries before the public issue of the company," it said.
Moreover, Sun TV Network also said the media reports claiming a rift between the promoter Maran brothers "does not have any bearing on the business of the company or its day-to-day functioning".
Sun TV Network also clarified that it is a "family matter of the promoter" and is "purely personal in nature"