Sun TV shares, once the jewel in the crown of media stocks, took an unprecedented battering amid reports that Union textiles minister Dayanidhi Maran, brother of owner Kalanithi Maran, would be questioned by the CBI in the irregularities of licences during his past stint as the communications minister.

The stock hit a 52-week low on the bourses on Thursday and lost around Rs 40.25 billion in market capitalisation, despite showing a sparkling financial performance in the fiscal ended 31 March 2011.

Sun TV shares tanked 31 per cent to hit a low of Rs 260.10 but recovered mildly to close at Rs 272.10 on the BSE.

"The skid was expected as the Marans have come under the scanner of the investigating agency. Financial institutions sold a large chunk and the scrip hit a 52-week low during intra-day trading," an analyst in a broking firm said.

The CBI has raised doubts on an investment by Malaysia-based telecom firm Maxis in the Sun group's direct-to-home company, Sun Direct. Allegations are that soon after Maxis' acquisition of Aircel, it invested $150 million in Sun Direct. Aircel was also awarded 14 telecom licences, prompting allegations made by political party BJP that the "investment in Sun Direct was too much of a coincidence".

"The CBI is looking into all the aspects of this deal. This is why the stock has come under a hammering. The fact that the Sun Group is a very robust-performing media company and can attract investments outside of political leanings has been brushed aside by the investors. But the stock can rebound," a media analyst said.

Sun TV reported a 48 per cent jump in net profit to Rs 7.70 billion on a 38.6 per cent rise in sales to Rs 20.13 billion for 2010-11.

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