Chennai: Sun TV Network shares surged 20 per cent intraday on September 30 to a 52-week high of ₹663.90 after a CNBC-Awaaz report said the company was considering a demerger of its SunRisers Hyderabad cricket franchise assets. The company later dismissed the report as a rumour.

The stock settled the day 9.35 per cent higher at ₹605 as traders booked profits following the denial. The demerger speculation had suggested the IPL franchise could be listed or housed separately to unlock shareholder value.

Sun TV clarified to the exchanges that there was no such proposal before its board. Market watchers said the sharp swing showed how sensitive media stocks remain to corporate-action rumours.

The SunRisers Hyderabad franchise is among the most valuable assets in the Sun TV portfolio. Analysts said any future value-unlocking move would need board and regulatory approvals, neither of which has been announced.

The stock's intraday swing of over 20 per cent was among the sharpest moves in the media sector this year. Dealers said speculative positions built up through the morning session were unwound after the company's clarification to the exchanges.