SpiceJet, Sun TV rise 9-10% as Maran exits airline company

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of SpiceJet jumped 10 percent while Sun TV rose 9 percent intraday on Friday. Investors are hurriedly buying shares of the low-cost carrier as Ajay Singh takes complete control of the company which has been struggling with financial problems. The airline company, after market hours on Thursday, announced its decision to transfer the ownership, management and control of the company to co-founder Ajay Singh from Sun Group chairman Kalanithi Maran and Kal Airways.

The restructuring scheme has been submitted to aviation ministry and we will wait for its nod to make further announcements, said SL Narayanan CFO, Sun Group. He agrees that certain job losses are inevitable when the carrier loses some fleets. Narayanan expects government to act very quickly on the approval. The bank loan of the airline is less than Rs 300 crore, he added.

Meanwhile, brokerages are positive on Sun TV Network as it removes a major overhang on the stock.

Credit Suisse maintains outperform rating on Sun TV as the South India-based company is its top pick in the media space to play the digitisation theme.  "With Sun TV's promoters now selling out of Spicejet, one key overhang gets removed as there were concerns promoters would use Sun to fund the airline," it says in a note.

The brokerage expects Sun TV to accelerate its earnings growth to 23 percent CAGR over FY15-17, compared with last three-year CAGR growth of 3 percent. According to Credit Suisse, its key driver of this will be increase in advertising spends by FMCG companies.

At 09:26 hrs SpiceJet was quoting at Rs 20.50, up Rs 1.85, or 9.92 percent while Sun TV Network was quoting at Rs 408.00, up Rs 32.45, or 8.64 percent on the BSE.