Sun TV Network today tumbled more than 11 per cent on the Bombay Stock Exchange (BSE) on market buzz that the Kalanithi Maran-promoted company was associated with Kalaignar TV, which was reported to have received Rs 214 crore as loan from DB Realty.
Kalaignar TV is majority-owned by family members of Dravida Munnettra Kazhagam chief and Tamil Nadu Chief Minister M Karunanidhi.
Sun TV shares opened at Rs 466 and slumped nearly 20 per cent to Rs 371.10 in early trades on the BSE. After the company denied link or association with Kalaignar TV, its shares recovered some of the lost ground. Sun TV shares finally closed at Rs 410.65, down by 11.45 per cent.
"There has been an unusual movement in our stock prices, which is apparently based on rumours linking our channels to other unrelated channel/network," Sun TV said in a clarification to BSE. "The company and its Chairman Kalanithi Maran categorically deny that they have or had any shareholding or association/transaction with Kalaignar TV."
Sun TV shares have lost nearly 18 per cent of their value in the last two trading sessions. DB Group-promoted Swan Telecom (now Etisalat DB) had received 2G telecom licence in 2008.