NEW DELHI: As the corporate battle hots up between the promoters of NDTV and that of Adani Enterprises (AEL) over the control of the media group, AEL on Friday said NDTV doesn’t need the Securities and Exchange Board of India’s (Sebi’s) nod to transfer the shares of its promoter entity -- RRPR Holdings -- to VCPL, which is now owned by the Adani group.
AEL in an exchange filing said contentions raised by RRPR are baseless, legally untenable and devoid of merit and RRPR is bound to perform its obligation immediately and allot the equity shares as specified in the ‘Warrant Exercise Notice’.
The statement by Adanis comes a day after New Delhi Television Ltd (NDTV) said Sebi had barred NDTV’s founder-promoters for 2 years (expiring Nov 26, 2022) from dealing in their shares directly or indirectly and that RRPR can’t convert its warrants, now owned by VCPL, into equity. It added that Adani requires approval from the Sebi to advance its acquisition effort.
“RRPR is not a party to the Sebi order dated November 27, 2020. Consequently, the restraints as pointed out by RRPR in paragraphs 111(b) and 112 of the Sebi order don’t apply to RRPR,” Adanis argued.
It said the Warrant exercise notice has been issued by VCPL under a contract that is binding on RRPR. RRPR is, therefore, obligated to comply with its contractual obligations” AEL said on Friday.
It added that performance of obligations by RRPR pursuant to the ‘Warrant Exercise Notice’ will not result in violation of the Sebi order as there is no ‘direct or indirect’ dealing in any securities of Prannoy Roy or Radhika Roy (founder-promoters) pursuant to the exercise of warrants by VCPL and allotment of shares by RRPR.
VCPL, therefore, doesn’t agree with RRPR that prior written approval from Sebi is required for allotment of shares to VCPL on exercise of warrants, said the statement by Adanis.
Meanwhile, NDTV's shares hit the upper circuit limit for the third straight day on Friday and climbed 5 per cent.
The scrip opened at Rs 423.85, hitting its highest trading permissible limit for the day as well as the fresh 52-week high level, on BSE.
This was a 5 per cent increase compared to Thursday's closing level of Rs 403.70 apiece.
On NSE too, the company's shares climbed 5 per cent to reach the upper circuit limit of Rs 427.95, which was also its 52-week high on the bourse, after opening at Rs 421.90.
In three days, the company's market valuation has rallied by Rs 371.68 crore to Rs 2,732.61 crore on BSE.
In the broader market, the BSE Sensex climbed 59.15 points or 0.10 per cent to settle at 58,833.87.
The NSE Nifty advanced 36.45 points or 0.21 per cent to end at 17,558.90.
(With PTI Inputs)