NEW DELHI: As NDTV share prices continue to surge, a 29% stake in the publicly-listed broadcaster is now valued at Rs 832 crore. This amount is seven times more than Rs 114 crore that the Adani Group paid to acquire Vishvapradhan Commercial Pvt Ltd (VCPL), which indirectly held a 29.18% stake in NDTV.
NDTV share prices on Monday closed at Rs 445 apiece and its market capitalization stood at Rs 2,868 crore. In the last 5 sessions, the stock has surged 23% and so far in 2022 it has advanced 287%. The current value of 29% stake is also more than twice the Rs 403 crore interest-free loan that was given by VCPL to NDTV’s founder-promoters Prannoy Roy and Radhika Roy in 2009 for a period of 10 years.
However, with the loan the amount yet to be repaid, VCPL, now owned by the Adani Group, has exercised warrants to take over RRPR Holding Private Limited, the holding company of the Roys, through which they hold a 29.18% stake in the media outlet. The Roys are yet to convert the warrants into equity.
Post acquiring a 29% stake in NDTV, the Adanis have plans to launch an open offer to acquire an additional 26% stake in the company. They have offered a price of Rs 294 per share, which may be too low to lure sellers.
“Most informed investors may not offer the shares of NDTV in the offer as the market price is
much above the offer price. Investors who do not offer the shares in the offer may sell the shares in the market now or wait for even better valuation under the new owners over the next few years,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
He added, “The acquirer shall not acquire any equity shares after the third (3rd) working day prior to the commencement of the tendering period and until the expiry of the tendering period. Only after the tendering period closes, they can do a creeping acquisition of a total of upto 5% equity in a financial year.”