Sun TV Shares Sink 5% Amid Share Dispute Between ‘Maran’ Brothers

Shares of Sun TV Network fell 5% on 20 June after a feud between the Maran brothers  over the ownership of the media company came to light, denting investor confidence.

The drop in investor confidence followed a legal notice sent by former Union Minister and DMK MP Dayanidhi Maran to his brother Kalanithi Maran, the billionaire media baron and Chairman of Sun TV.

According to the notice, these alleged transactions were carried out when their father, the late Union Minister Murasoli Maran, was in a coma and on life support between late 2002 and his passing in November 2003.

Dayanidhi claims that after their father's death, shares were hastily transferred to their mother, Mallika Maran, without necessary legal documents such as a death certificate or legal heir certificate, both of which were issued only later. The transfer, the notice argues, facilitated the eventual shift of shares into Kalanithi’s name.

One of the most serious allegations centres around an incident on 15 September 2003, when Kalanithi is said to have allotted himself 12 lakh equity shares at a nominal value of ₹10 each, a time when, according to the notice, each share was worth between ₹2,500 and ₹3,000.

At the time, the company was financially healthy and had no need to raise funds, making the share issue highly questionable. Before this, Kalanithi reportedly held no shares, but following the transaction, he emerged as the majority stakeholder, diluting the original family shareholding from 50% each to a mere 20%.

The legal notice also takes issue with Sun TV's Red Herring Prospectus filed in 2006, accusing the company of misleading stakeholders. The prospectus claimed a dividend payout of ₹10.64 crore to Mallika Maran as of 31 December 2005. However, the notice alleges that no such dividend was actually paid through official channels.

As per the latest shareholding data, Kalanithi Maran holds a 75% stake in Sun TV Network.

The legal notice seeks to restore the company’s shareholding to its original structure as of 2003. The matter brings longstanding differences within the Maran family into the legal domain and stoked concerns over the future governance of the company.