Sun TV Network shares surged 18% after CNBC Awaaz reported that the company is preparing a demerger of its cricket franchise assets, closing at ₹626.2 on the BSE/NSE.
The company’s market capitalisation sits at roughly ₹24,000 crore, while free cash reserves hover near ₹8,000 crore, underscoring a solid liquidity base.
The potential demerger could unlock an estimated ₹13,000‑₹14,000 crore value for the IPL franchise, which accounts for 33% of Sun TV’s first‑quarter revenue.
Industry peers such as Royal Challengers Bengaluru and Rajasthan Royals are valued at ₹16,660 crore and ₹15,286 crore respectively, signalling a broader rally in IPL franchise valuations.
Analysts note that a formal demerger would require regulatory filings and board approval, so investors should monitor the company’s filing dates and any guidance on the timing of the split.