Sun TV may go for QIP to cut promoter holding

MUMBAI: Chennai-Based media major, Sun TV, is believed to be weighing its options for raising funds through a qualified institutional placement (QIP) or private placement. The stake sale has become mandatory in the wake of Sun merging its satellite business with itself, as the merger, would result in the promoter stake in Sun TV rising to around 93% ��� as against the mandated maximum of 90%.

Company sources familiar with the development told ET that the board will consider this proposal on meeting on January 24. However, a final decision on the mode of stake sale is likely to be made after the merger. A company spokesperson declined to comment further.

The market seems to have got a wind of the deal with the stock rising around 22% in a month. Sun TV share closed at Rs 1600, a rise of 4.2%, on Thursday on the BSE. Sources said the placement is likely to be made at around Rs 1,700.

Analysts told ET that post-merger of Sun���s satellite division with the parent, the promoters stake in the company may go up to 93%. In such a scenario it becomes statutory under Sebi rules, to reduce the promoter stake below the stipulated 90%, they said.