Sun TV shares rally as Madras HC allows group to participate in FM radio auction

NEW DELHI: Shares of Sun TV jumped over 7 per cent in intraday trade on Thursday after the Madras High Court issued an interim order allowing the group to participate in the Phase-III auction process of FM radio.

The stock ended the day at Rs 273.90, up 6.02%, on the BSE.

Justice M Sathyanarayanan, who passed the order, said the results of the auction should be kept in a sealed cover till further orders.

The judge also said the decision is subject to the result of the main writ petition filed by the group seeking a direction to quash the order passed by the Information and Broadcasting Ministry.

The Ministry had disallowed the group from taking part in the auction process on the basis of absence of clearance from the Union Home Ministry.

On Tuesday, the court had reserved its order on an interim plea by the Sun Group seeking a direction to the Centre to allow it to participate in the auction process.

Making the interim prayer in a batch of six petitions, the Sun Group and its companies had sought a stay on the July 15 order of the I&B Ministry refusing the permission.

(With inputs from PTI)