Sun TV arm, South Asia FM (SAFL) has signed up a strategic partnership agreement with Red FM. The financial details of the deal were not disclosed yet.

According to the arrangement plan, SAFL has adopted 48.9% stake in Red FM from the holding companies, but, the Red FM promoters will continue to hold the remaining 51.1% in the company.

Red FM is one of the fastest developing FM Radio companies in India, which operates 3 radio stations in the three metropolitan cities including Kolkata, Delhi and Mumbai. It is the number 2 player in two of the biggest FM radio Indian markets i.e. Mumbai and Delhi.

For the quarter ended June 2007, the company recorded an increase of 2.20 times in its net earnings, which stood at Rs 930.70 million, as against Rs 422.30 million for the same period of the last year (2006).

The company net sales for the period under review boosted 2.26 times, to Rs 2,023.40 million, as compared with Rs 894.20 million for the same period of the last year.

Today, the company’s shares were trading up Rs 28.20 at Rs 340.15. The scrip was dealing with the total volumes of 245,290 shares.