New Delhi Television (NDTV) shares remained trapped at the 5% upper circuit on the BSE on Wednesday, reaching a 14-year high of Rs 384.50
after Gautam Adani’s organization announced on Tuesday after market hours that it would acquire a majority interest in the TV broadcasting and software creation company.
1.16 million equity shares had been traded up till 9:16 am, while 98,170 shares had pending buy orders on the NSE and BSE. The S&P BSE Sensex, in contrast, was up 0.12% at 59,099 points.
It reached its best price since August 2008 during trading.
Compared to the S&P BSE Sensex’s 8% growth over the last three months, the stock price of NDTV has increased by over 140%. It increased 382% in one year compared to the benchmark index’s gain of 6%.
The wholly owned subsidiary of AMG Media Networks Limited (AMNL), Vishvapradhan Commercial Private Limited (VCPL), is
the owner of RRPR Holding Private Limited (RRPRH) warrants that can be converted into a 99.99 percent interest in RRPR. With the exercise of warrants, VCPL now owns 99.5% of RRPR.
In the event of such a purchase, VCPL will come into control of RRPR, according to a press release from Adani Enterprises (AEL).
The media division of the Adani Group is housed under AMNL, an entirely owned subsidiary of AEL. The business was recently established to create a reliable next-generation media platform focusing on broadcast and internet segments.
AMNL’s most recent acquisition, VCPL, is a completely owned subsidiary of the company.
RRPR owns a 29.18% ownership in NDTV and is a member of the promoter group. According to the SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, VCPL will launch an open offer to purchase up to a 26% share in NDTV jointly with AMNL and AEL (persons acting in concert), the business said.
In an exchange filing, according to NDTV, VCPL has exercised its right to acquire 99.50 percent control of RRPRH. This promoter-owned business owns 29.18 percent of NDTV without consulting the company or its founder-promoters.
Based on a credit deal it entered with NDTV founders Radhika and Prannoy Roy in 2009–10, VCPL issued the notification.
According to the notice, VCPL has used its option to convert 1,990,000 warrants into equity shares of RRPRH for Rs. 10, and a total of Rs. 1,990,000 has been transferred to RRPRH, according to NDTV.
According to the paperwork made available to stock markets on Tuesday evening, the open offer for 26 percent of NDTV has a value of Rs 493 crore.
According to the Business Standard, the available offer price has been set at Rs 294 per share, a 19.7% drop from Tuesday’s closing price of Rs 366.2 a share.
The Roy family, NDTV’s current promoter group, will retain a 32.3% interest in the company. They claimed that the Adani group companies bought the share without engaging its promoters.
There could be legal repercussions as a result. According to a report from ICICI Securities, the acquisition is consistent with the Adani group’s current plans to enter the media industry and acquire a stake in Quint.