Sun TV Shares Jump 18% as Report of Possible SunRisers Hyderabad Demerger Draws Attention

Sun TV Network shares climbed as much as 18% on September 30 after a report suggested that the company may be preparing for a possible demerger of assets linked to its Indian Premier League franchise, SunRisers Hyderabad. 

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The sharp move extended the stock’s winning run to an eighth straight session. Over this period, Sun TV shares have gained 47%. 

The development followed a CNBC-Awaaz report about preparations for a potential separation of the SunRisers Hyderabad business. Sun TV, however, did not confirm the development. In a response to the stock exchanges, the company described the news item as a market rumour and said it could not comment on market rumours. 

The rally in Sun TV also lifted the broader media pack. The Nifty Media index gained nearly 4% during the session and was the strongest-performing sectoral index. PVR Inox rose more than 4%, while Saregama India gained over 3%. It was the second consecutive session of gains for the media index. 

At 2:05 pm on September 30, Sun TV shares were trading at ₹646 apiece, with the company’s market capitalisation at nearly ₹25,500 crore. 

SunRisers Hyderabad valuation in focus 

The possible value of the IPL franchise has also drawn attention. A brokerage report cited by CNBC-TV18 valued SunRisers Hyderabad at between $1.4 billion and $1.5 billion, equivalent to roughly ₹13,000 crore to ₹14,000 crore. 

IPL-related revenue accounted for 33% of Sun TV’s revenue during the first quarter, according to the report. 

The discussion comes at a time when valuations of IPL teams have been in focus following major transactions this year. Royal Challengers Bengaluru has been valued at around $1.78 billion, or approximately ₹16,660 crore, while Rajasthan Royals has been valued at about $1.63 billion, or roughly ₹15,286 crore. 

Sun TV Network recently held its 41st Annual General Meeting on September 18, where shareholders approved the company’s audited financial statements for FY26 and confirmed interim dividends. 

The company had 103,045 shareholders as of the record date. Votes were cast by holders representing 94.25% of the outstanding shares, while the promoter group, which held 29,55,63,457 shares, participated fully through electronic voting. 

For now, the possibility of a SunRisers Hyderabad demerger remains unconfirmed by Sun TV. The report around the potential move, however, was enough to trigger a sharp reaction in the company’s shares during Wednesday’s session.