Sun TV Network is owned by Kalanidhi Maran, who is the brother of the former Telecom Minister Dayanidhi Maran.
The CBI case is allegedly against the Maran brothers on charges that Mr. C Sivasankaran, the former owner of Aircel was coerced to sell his company to the promoter of Maxis Communications, Mr Ananda Krishnan.
How the stock took a quick turnaround after falling?
The stock of Sun TV Network sat on the swings on Monday, saw a steep fall on the news by falling it to Rs 235.05 on the Bombay Stock Exchange (BSE) and ended with a gain of over 10% to Rs 288.15.
Market Analysts said that right after the news, the traders went short on the stock and then covered their positions later in a day. The stock also recovered on bottom fishing, where the traders bought the stock on the belief that the drop was due to panic selling, and the stock will rise later, so they increased their holding in the latter part of the trade, making the stock recovered from its day's lows.
According to the June quarter shareholding pattern, individual investment in company's shares accounts for merely 6.83% or 2.69 crore shares and rest is being held by the promoters and institutional investors. This implies retail investor holding in the stock is very low. (As reported by The Hindu Business Line).
Due to low public float of shares in the market, the company was survived from any major swing in its share prices.
So, both short covering and renewed bottom fishing is responsible for the swing.