Sun TV Shares Surge on Report of Potential SRH Demerger

Network shares surged up to 18% on September 30 after a CNBC-Awaaz report said the company was preparing for a potential demerger of its SunRisers Hyderabad (SRH) cricket franchise. The reported development triggered strong buying interest, with the stock rising for the eighth consecutive session. The IPL franchise was reportedly valued at around $1.4–1.5 billion, equivalent to approximately ₹13,000–14,000 crore. IPL-related revenue accounted for around 33% of Sun TV’s revenue in the June quarter, highlighting the significance of the cricket franchise to the company's business. However, Sun TV has clarified that the news item is a rumour and said the company cannot comment on market rumours. At around 2:05 pm, Sun TV shares were trading 16.5% higher at ₹646, giving the company a market capitalisation of nearly ₹25,500 crore.