Latest news with #DayanidhiMaran
Hans India
10-07-2025
- Business
- Hans India
Tamil Nadu CM Stalin Reportedly Mediates In Maran Brothers' Business Feud Over Sun TV
Tamil Nadu Chief Minister MK Stalin has reportedly stepped in to mediate a bitter family dispute between DMK MP Dayanidhi Maran and his elder brother Kalanidhi Maran, who serves as chairman and managing director of Sun TV Network. Sources suggest that the Chief Minister, who is also the uncle of the warring siblings, has counseled both brothers to settle their differences privately for the sake of family harmony. The intervention comes in the wake of escalating tensions between the brothers, which became public when Dayanidhi Maran issued a legal notice to his elder brother last month. The notice also named his sister-in-law and six other individuals in connection with disputed share transactions within the Sun TV Network that allegedly occurred more than two decades ago. Neither brother has officially confirmed the Chief Minister's involvement in attempting to resolve their dispute, leaving the extent of Stalin's mediation efforts unclear. However, the reported intervention highlights the significant nature of the conflict and its potential implications for both the family and the broader political landscape in Tamil Nadu. The legal notice filed by Dayanidhi Maran contains serious allegations against his brother, including claims of criminal breach of trust and fraudulent practices. The core of the dispute centers on allegations that Kalanidhi Maran improperly allocated 12 lakh shares of Sun TV Network Ltd. to himself on September 15, 2003, without following proper procedures for valuation, obtaining fair consideration, or securing consent from existing shareholders. The younger Maran brother has characterized these share transactions as illegal and a fundamental violation of shareholder rights. His legal notice goes beyond the initial share allocation issue, also alleging that approximately Rs 8,500 crore was invested in various domestic and international Real Estate Investment Trust funds and mutual funds using undisclosed resources without proper authorization or disclosure. The allegations extend to claims that regulatory filings with major financial institutions were misleading. Dayanidhi Maran has accused his brother of submitting fraudulent documentation to the Securities and Exchange Board of India, National Stock Exchange, and Bombay Stock Exchange, allegedly in collaboration with lead managers to facilitate the company's public listing. The legal notice demands significant remedial action, including restoration of the company's shareholding structure to its 2003 configuration and return of all dividends, assets, and monetary benefits that were allegedly misappropriated. The notice warns that failure to comply with these demands would result in comprehensive legal action across civil, criminal, regulatory, and enforcement domains. Sun TV Network Ltd. has strongly refuted these allegations through an official regulatory filing with the Bombay Stock Exchange. The company dismissed the claims as speculative, defamatory, and lacking factual or legal foundation. The company's statement emphasized that all corporate actions were conducted in compliance with legal requirements and had been properly vetted by relevant intermediaries before the public offering. The company's response also sought to minimize the potential impact of the dispute on its operations, noting that the allegations relate to events that occurred 22 years ago when Sun TV was a privately held company. The statement characterized the matter as a personal family dispute among promoters that does not affect the company's business operations or daily functioning. The timing of this family feud is particularly significant given the prominent positions held by both brothers in Tamil Nadu's political and media landscape. The dispute has the potential to create complications for the DMK party, of which Dayanidhi Maran is a sitting Member of Parliament, while also affecting one of South India's largest media conglomerates. The Chief Minister's reported intervention reflects the delicate balance required in managing family disputes that intersect with political and business interests. The outcome of this mediation effort could determine whether the brothers can resolve their differences privately or whether the dispute will continue to play out in legal and public forums.
India Today
10-07-2025
- Business
- India Today
Uncle Stalin plays family referee as Maran brothers clash over Sun TV shares?
Tamil Nadu Chief Minister MK Stalin is believed to have intervened in the ongoing dispute between DMK MP Dayanidhi Maran and his elder brother Kalanidhi Maran, the chairman and managing director of Sun TV Network. According to sources, the Chief Minister urged both brothers to resolve their differences amicably in the interest of the has been no official confirmation from either Dayanidhi or Kalanidhi Maran regarding the involvement by the Chief Minister – who is also their uncle – on the current status of the to mend the rift follow Dayanidhi Maran's move last month to issue a legal notice to his elder brother, sister-in-law, and six others. The notice objected to certain share transactions of the Sun TV Network dating back to 2003. According to the notice, Dayanidhi Maran has alleged criminal breach of trust and cheating, stating that on September 15, 2003, Kalanidhi Maran unlawfully allotted 12 lakh shares of Sun TV Network Ltd. to himself without proper valuation, fair consideration, or consent from existing shareholders. The notice termed the transaction illegal and a betrayal of shareholder further claimed that approximately Rs 8,500 crore had been invested in various domestic and international Real Estate Investment Trust (REIT) funds and mutual funds using undisclosed resources. These investments, the notice alleged, were made without authorisation or disclosure, with evidence drawn from savings account Maran also contended that a red herring prospectus filed with the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE), and Bombay Stock Exchange (BSE) was misleading and based on fraudulent documentation, allegedly in collusion with lead managers to facilitate the public listing of the has demanded that the company's shareholding be restored to its original structure as of 2003 and that all dividends, assets, and monetary benefits allegedly misappropriated be returned. The legal notice warned that failure to comply would result in appropriate civil, criminal, regulatory, and enforcement response, Sun TV Network Ltd. issued a clarification through a regulatory filing with the BSE on June 20. The company described the allegations as speculative, defamatory, and unsupported by facts or law. 'The statements allegedly made in the articles are incorrect, misleading, speculative, 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 TV further noted that the matter dates back 22 years, to a time when the company was a closely held private limited entity, and insisted the dispute had no impact on its operations. '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 statement read.- Ends IN THIS STORY#Tamil Nadu
News18
08-07-2025
- Business
- News18
Family Feud Ends? Maran Brothers Call Truce After Row, CM Stalin Played Mediator: Report
Last Updated: The mediation took place recently in the presence of key members of the DMK family, including Tamil Nadu Chief Minister MK Stalin A reported truce has been reached between DMK MP Dayanidhi Maran and his elder brother Kalanithi Maran, Chairman of Sun TV Network, following a bitter and public family dispute over alleged financial mismanagement and company shareholding. According to a report by The Hindu citing sources, the mediation took place recently in the presence of key members of the DMK family, including Tamil Nadu Chief Minister MK Stalin. While sources confirmed that a meeting took place, none of the individuals involved have revealed details of the discussion or the terms of the apparent settlement. The peace deal after a legal notice issued by Dayanidhi Maran in June, where he accused his brother of serious financial misconduct. The allegations included fraudulent practices, misgovernance, and even money laundering, reportedly linked to the management and shareholding of Sun TV following the death of their father, Murasoli Maran, in 2003. Dayanidhi had claimed that their father had died without leaving a Will, and demanded that the company's shareholding structure be restored to what it was in 2003. His legal notice also warned of possible investigations by multiple regulatory bodies, including the Serious Fraud Investigation Office (SFIO), SEBI, RBI, Enforcement Directorate, and the Registrar of Companies. The row had an immediate impact on markets, with Sun TV's shares falling over 5 percent in early trade shortly after the news broke. In response, the company had issued a statement clarifying that the matter was personal and would not affect its operations or performance. At present, Kalanithi Maran holds a 75 percent stake in Sun TV Network, a major media conglomerate with a market capitalisation of over Rs 24,000 crore. The network broadcasts in seven languages across India, operates several FM radio stations, and owns IPL franchise Sunrisers Hyderabad as well as the Sunrisers Eastern Cape in South Africa's T20 league. view comments First Published: July 08, 2025, 23:16 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
23-06-2025
- Business
- Mint
Sun TV's real worries go beyond the family feud—its business woes run deep
Investors of Sun TV Network Ltd got spooked last week when news of a family feud surfaced. Dayanidhi Maran, a former member of Parliament from Tamil Nadu's ruling Dravida Munnetra Kazhagam (DMK) party, in a 10 June legal notice accused his brother Kalanithi Maran, chairman of Sun Group, of fraudulently acquiring control of Sun TV. Since then, the Sun TV stock has corrected by more than 3%. Is this a personal matter that will resolve itself in due time, or should investors be worried? Family feud ranks low in Sun TV's list of worries The issue raised by Dayanidhi Maran dates back more than two decades. According to his legal notice, Kalanithi Maran allegedly acquired a controlling stake in Sun TV following their father Murasoli Maran's demise in 2003. He had no stake in the media company prior to that. Dayanidhi has accused Kalanithi of abusing the family's emotional state at the time to transfer Sun TV shares to his name at sharply discounted prices. He has called for the company's shareholding to be reverted to its earlier state. That would cut Kalanithi's estimated ₹18,000 crore (about $2 billion) stake in Sun TV to zero and shift the company's control to Dayanidhi and their cousin M.K. Stalin (Tamil Nadu's chief minister) as well as their siblings. The politically charged family feud caught investors off guard when news reports surfaced on Thursday evening, 20 June. The stock, however, recovered from its intraday low on Friday after Sun TV's management assured investors that the family feud was not expected to have any bearing on the business. But in the larger scheme of things, the media business has bigger worries to grapple with. Since Sun TV's listing in 2006, the midcap stock has appreciated at a compound annual growth rate of just 3.3%, while the broader index delivered a 13.8% annualized return in that period. Also read | Mint Explainer: How Kalanithi Maran spent ₹37 crore to take control of Sun TV A legacy in trouble Sun TV is one of India's largest media conglomerates. With 37 TV channels in seven languages, DTH (direct-to-home) service, 69 FM radio stations, six magazines, and three daily newspapers, the company's reach extends to more than 140 million households in India, particularly in southern states. More than 80% of Sun TV's business comes from ad revenues and domestic subscriptions. The remaining is attributed to its cricket franchises. The company owns the Indian Premium League's Sunrisers Hyderabad cricket team as well as Sunrisers Eastern Cape, a team in South Africa's T20 cricket league. Between 2005-06 and 2018-19 (FY 2006-19), Sun TV expanded its revenues and profits at a robust CAGR of 20%. But in recent years, Sun TV has struggled to keep up with competition. Industry consolidation has made matters worse. Sun TV attempted to expand in north India by operating a Hindi channel through DD Free Dish, but met with lukewarm response. Meanwhile, north-focused media channels such as Zee Entertainment Enterprises Ltd found better acceptance in south India. Sun TV is also falling behind because of the growing popularity of video streaming platforms or OTT (over-the-top) platforms. Unlike other media houses that focused on securing exclusive OTT rights and creating originals, Sun TV has been rerouting traditional movies and satellite and cable TV serials towards its OTT platform, Sun NXT. The company's DTH offering, Sun Direct, has also seen growth stall in a challenging operating environment. As a result, Sun TV has been reporting stagnant revenues and profits for more than half a decade. Between FY19 and FY25, its standalone revenues have grown at a CAGR of just about 1%, while profits have expanded by less than 3% annually. The company's cricket franchises have been performing better than its media business. But for the cricket business to scale to its full potential, and for investor value to be unlocked, the franchises would need to be demerged into a separate listed entity. Making matters worse, a shift in advertisement spending towards sports channels and news coverage of the 2024 national election affected Sun TV's ad revenue in FY25. While the company's domestic subscription revenue increased slightly from ₹1,710 crore in FY24 to ₹1,725 crore in FY25, it fell short of expectations as price hikes played out slower than anticipated. Its cricket franchise income also dropped, from ₹659 crore in FY24 to ₹642 crore in FY25. Meanwhile, costs continued to increase as the company tried to keep up with competition. The result: a 6% decline in FY25 revenue to ₹4,015 crore and a sharper 11.5% drop in profit to ₹1,704 crore. Technical analysis The Sun TV stock managed to largely keep pace with the midcap index until 2018. But when its fundamentals started disappointing, the counter started going downhill. From an all-time high of more than ₹1,000 per share in early 2018, the stock crashed to ₹266 by 2020. The lower highs and lower lows formed along the way held up as critical levels in subsequent years. The latest bout of corrections in the stock came after it hit a 52-week high of ₹921 in August 2024. On breaching the ₹777 level, in an echo of the fall seen in 2018 the counter saw a monotonic fall down to around ₹580. This is also the level where the stock found support following the family feud news last week. If the stock manages to sustain above ₹580 apiece, it is expected to face resistance at the previous high of ₹650. But a sustained breach below ₹580 can keep the counter rangebound between ₹400 and ₹580 per share. Silver linings Over the years, Sun TV's revenues and profits have grown at a CAGR of around 14%. Its stock, however, has lagged behind. Consequently, the counter is available at attractive valuations. Following the 20% correction seen over the past year, Sun TV's valuation has moderated further. The stock is now trading at barely 14 times its trailing-12-month earnings. Over the near term, Sun TV's ad revenues can be expected to improve on a low base, particularly as consumer goods companies ramp up advertising. Its cricketing franchises can also support growth going forward. Factoring in a recovery in growth and a multiple of 18x, Sun TV's target price has been pegged at ₹865 apiece. This reflects more than a 40% upside from current levels. But any negative surprises on the company's fundamentals can extend the negative sentiment around the counter. When diversification backfires: Four Indian companies walking a fine line Why some Indian companies are paying dividends despite posting losses JM Financial stock rebounds 60% from its low. Will the clean-up rally sustain? Ananya Roy is the founder of Credibull Capital, a Sebi-registered investment adviser. X: @ananyaroycfa Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
India.com
22-06-2025
- Business
- India.com
Dispute between Dayanidhi Maran and Kalanithi Maran is worth Rs...; who is richer among the two brothers?
Dayanidhi Maran has accused Kalanithi Maran of fraudulently acquiring 12 lakh shares of Sun TV network in 2003. DMK MP Dayanidhi Maran has sent a legal notice to his elder brother Kalanithi Maran– the billionaire chairman and founder of Sun Group, one of India's largest media conglomerates– alleging that Kalanithi committed fraud in 2003, when he received 12 lakh shares of the Sun TV network, allegedly without the board's approval. How much money is dispute worth? In the legal notice, Dayanidhi Maran claimed that before the share transfer, Kalanithi Maran did not have single share of the company to his name, but fraudulently managed to acquire 12 lakh equity shares without board approval. At the time, Sun TV shares traded at Rs 10 apiece, and the company were valued at around Rs 3000 crore. Thus the dispute between the Maran brothers is worth Rs 3000 crore. Dayanidhi alleges that in 2003, immediately after the demise of their father, Murasoli Maran, Kalanithi fraudulently registered 12 lakh shares in his name, when the family was still in mourning. Kalanithi allegedly flouted corporate laws and transferred the shares without permission from the company's board. As per Dayanidhi's notice, Kalanithi Maran has received Rs 5,926 crore as dividend in 20 years, including Rs 455 crore in 2024 alone. Who are the Sun TV stakeholders? In his notice, Dayanidhi asserted that after their father's demise, both brothers should have received and equal 50-50 stake in the company, but Kalanithi fraudulently transferred 12 lakh equity shares to his name, which gave him a 70 percent ownership in the business. His stake has currently expanded to 75 percent. Former Union Minister and DMK leader Murasoli Maran, launched TV Network in 1993, which currently operates 37 satellite channels, ranging from entertainment to news and infotainment, reaching around 14 crore viewers across the country. Over the years, the Sun Group has also expanded into radio, newspapers and DTS broadcasting. Currently, the market cap of the Sun TV network is pegged at around Rs 24,000 crore. Dayanidhi Maran or Kalanithi Maran– who is wealthier? According to Forbes, Sun Group chief Kalanithi Maran has a net worth of $2.8 billion, making him richer than his brother Dayanidhi Maran, at least on paper. Additionally, Kalanithi Maran's daughter, Kavya Maran, owns the Sunrisers Hyderabad IPL franchise, and the Maran family recently acquired a county cricket team in England for Rs 1,094 crore. Kalanithi receives an annual package of Rs 87.50 crore from Sun TV Network, while his wife Kaveri Maran, who is an executive director in the company, also gets an annual package of Rs 87.50 crore. In contrast, Kalanithi's younger brother, Dayanidhi Maran, has total assets worth Rs 11.67 crore, in addition to a bank balance of Rs 2 crore, and gold worth Rs 50 lakh, according to mandatory declarations he made ahead of the 2023 state polls. Further, Dayanidhi has invested Rs 60 lakh is shares of a few companies, and has Rs 2 lakh in PF account and an L&T policy of Rs 6 lakh. According to details, the DMK leader has movable assets worth Rs 3.65 crore and a 3,000 square feet land in terms of immovable property.
