Sebi nod clear decks for Adani’s NDTV grab
NEW DELHI: The Securities and Exchange Board of India (Sebi) has paved the way for billionaire Gautam Adani to take control of New Delhi Television Ltd (NDTV) by giving the regulatory nod to the Adani Group to float an open offer for acquiring another 26 per cent stake in the media company.
Sebi’s nod brings an end to the legal tussle between Pannoy and Radhika Roy-promoted NDTV and Adani Group over the control of the broadcaster.
Gautam Adani
Adani wanted to float an open offer in October itself, but it was delayed for want of the regulator’s approval. It has now been rescheduled from November 22 to December 5, during which period NDTV shareholders can tender their shares to Adani Group at a pre-determined price.
The Adani Group is offering Rs 294 for each share of NDTV in the open offer. On Monday, NDTV shares closed at Rs 365. Adani's already hold a 29.18 per cent stake in the New Delhi-based firm after they acquired Vishvapradhan Commercial Private Limited (VCPL) which owned warrants of NDTV’s promoter entity RRPR Holding and exercised the option to convert them into equity. If the open offer goes through, Adanis will have over 55 per cent stake in NDTV.
Radhika and Prannoy Roy together hold 32 per cent in NDTV.
It all started when Adani Group firm AMG Media Networks Limited bought VCPL for `114 crore in August this year. VCPL, then, decided to exercise its rights to convert those warrants into shares amounting to 99.5 per cent of RRPR.
RRPR held 29.18 per cent in NDTV.
NDTV promoters tried to avert the hostile takeover saying the market regulator had barred NDTV’s founder-promoters from dealing in their shares for two years. NDTV promoters fired another salvo on September 1, 2022 saying VCPL needed the tax department’s nod for exercising its right to convert its warrants.