The Adani Group had started off with a hostile takeover bid for New Delhi Television (NDTV) by indirectly snapping up a 29.18 percent stake in the broadcaster. Along with Vishvapradhan Commercial and AMG Media Networks, the Adani group followed up the takeover with an open offer to purchase an additional 26% of the shareholding in the company.
The open offer started on November 22 and is set to close on December 05, 2022. It witnessed a subscription of nearly 32% of the media firm. The offer was to buy 1.67 crore shares or 26% of the equity from NDTV’s minority investors at ₹ 294 apiece, which is at a deep discount of 29% to its closing price of ₹ 414.40 apiece as of Friday. As a result, NDTV’s shares are locked in a 5% lower circuit at ₹ 390.45 apiece.
According to data available on the National Stock Exchange (NSE), the group has received offers for 53.27 lakh shares. Corporate investors have offered the most at 39.34 lakh shares, followed by 7 lakh shares from retail investors, and 6.86 lakh shares from Qualified institutional buyers (QIBs).
Prior to Adani’s takeover, the promoters held a 61.45% stake in the broadcaster. This included 1.88 crore shares or 29.18% stake held by RRPR Holding Pvt. Ltd. (Radhika Roy Prannoy Roy Holdings Private Limited). The Adani group acquired the firm in August, thereby indirectly acquiring a stake in NDTV.
The Adani group has become the largest shareholder of NDTV and this gives it the right to appoint at least two directors on the company board including its chairperson, according to market experts.
RRPR Holdings took an interest-free loan of ₹403 crores, in 2009, from a firm linked to Reliance Industries, which eventually ended up with a closely-held firm, Vishvapradhan Commercial Pvt Ltd (VCPL). This loan allowed VCPL to convert warrants into shares of RRPR Holdings, which held a 29.18% stake in NDTV. The Adani group in August acquired VCPL and sought conversion for the warrants arising from unpaid loans into equity.
Post takeover, the Adani group appointed two of its executives — Sudipta Bhattacharya and Sanjay Pugalia — to RRPR’s board. In addition, it appointed Senthil Chengalvarayan, a journalist, to the board. He is an independent director at Quintillion Business Media, another media firm in which Adani bought a stake earlier this year.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author is not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
