Sun TV promoters to sell 2 per cent stake via OFS: Sources

MUMBAI: Promoters of Chennai-based Sun TV Network are likely to sell 2 per cent stake through offer for sale ( OFS) to comply with the Securities Exchange Board of India’s minimum shareholding norms, say sources.

The issue price seen is seen in the range of Rs 410-420 per share. The promoters, who own 77 per cent stake in the company, are likely to raise around $65 million via OFS route.

The road show for the OFS will begin today. IIFL, BNP Paribas and Enam are bankers to the issue, say sources.

The issue is likely to open on May 27, 2013 and close on May 31, 2013.

The stock has been in focus after the company recently hiked its ad rates on weekday primetime (6 out of 9 half-hour slots daily) on the flagship channel Sun TV.

Motilal Oswal has maintained ‘Buy’ rating on the stock with a price target of Rs 505.

The stock gained over 2 per cent intraday after the story was reported on ET Now.

It has pared some of the intraday gains since then.

At 11:40 a.m.; the stock was at Rs 432.65, up 0.85 per cent, on the BSE. It touched a high of Rs 437.80 and a low of Rs 430 in trade today.