Will Marans emerge unhurt without any impact on businesses

CHENNAI | MUMBAI: Sun TV, South India’s largest media company, see-sawed on Friday, with its patrons DMK losing the state assembly elections to rival J Jayalalithaa. But promoters Maran family could attempt to reconcile the political-business rivalry as in the previous term of Jayalalithaa, leaving investors askance.

Sun’s rival Raj Television, and some companies whose promoters are perceived to be close to Jayalalithaa, rose on speculation that the association may help them.

Sun TV rose 3.76% to Rs 410.25, before which it touched Rs 418, while Raj TV surged by the 20% limit to Rs 63.50. Vijay Shanti Builders gained 8.7% at Rs 22.50 and Gemini Communications 18% at Rs 23.55.

“We advise investors to remain cautious at these levels as further downside is anticipated in the coming days due to the sentimental impact,” said Dharmesh Pancholi, senior manager-equity, Sharekhan, referring to investing in Sun TV.
Jayalalithaa’s AIADMK, which runs Jaya TV channels, swept the state polls with more than four-fifths majority. Sun TV, the popular television channel, and its Sumangali Cable Vision are run by the Maran family that are part of the outgoing DMK.

Jaya’s cable TV plans

Kalanithi Maran, promoter of Sun and his brother Dayanidhi, former telecommunications minister, are grand nephew of the DMK’s M Karunanidhi, the chief minister who lost the polls.

“Cable television will be taken over by the government,” said Jayalalitha’s election manifesto. “No monopoly. Government cable TV connection will be provided at subsidised rates to every home in the state. Those in the business of providing last-mile connectivity of television cables will not lose their jobs. Their interests will be protected.”

Now, Sumangali Cable Vision is responsible for distributing all Sun Group regional channels and radio stations across the state. In her earlier tenure, Jaya wanted to regularise the cable distribution by establishment of Arasu Cable, which could not go through. That plan was revisited by the DMK, when they had a split with the Marans. The plan was put to rest when they patched up.

But the Marans emerged unhurt without any impact on their businesses, in the previous term of Jayalalithaa. Raj TV helped set up the DMK's channel, Kalaignar TV, just before its IPO. Shares of BGR Energy, whose promoters are believed to be backing the DMK, rose 4% to Rs 500.25.