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BUSINESS EYE AUGUST 26, 2022 | The Indian Eye 40

How the Adani Group acquired stake in

NDTV and gave a boost to its stocks

The Group says it will indirectly acquire 29.18 per cent stake in NDTV through a
subsidiary and make an open offer to acquire another 26 per cent of the shares

OUR BUREAU
Ahmedabad/New Delhi

day after Adani group put in a bid to take
a majority stake in NDTV, the stock price
A the media group hit the 5% upper circuit
of
on the bourses and was frozen at Rs 385, a 14-year
high level. On Tuesday, Adani Enterprises, along
with two other group companies, launched an open
offer to the shareholders of NDTV to acquire 26%
in the company at a per-share price of Rs 294. At
Wednesday’s closing, the open offer price was at a
24% discount. Before that it had acquired 29% in
the company through conversion of warrants into
shares.
In the last one year, the NDTV stock has risen
nearly five-fold. On August 24, 2021 the stock was
at Rs 79. And in the last one month the stock has
gained 44%. In comparison, the Nifty Media index
on the NSE gained 33% in the last one year and
6% in the last one month.
During the day, Parimal Nathwani, Director,
Corporate Affairs of Reliance Industries congrat-
ulated Adani Group chairman Gautam Adani
for acquiring a stake in NDTV. Tagging Gautam
Adani, Nathwani, who is also a Rajya Sabha MP,
tweeted, “Congratulations to Shri Gautam Adani
for acquiring a stake in the national channel NDTV.
This is just one of the many takeovers by the Adani
Group, which have now become a frequent occur-
rence. The process is really going on at full speed!” Adani Group Chairman Gautam Adani (ANI)
But NDTV on Tuesday said that the move by
an Adani group subsidiary to acquire a 29.18 %
stake in it was made without any “conversation” or like to make it clear that this exercise of rights by It will trigger an open offer to acquire up to
“consent” and that it founders were made aware of VCPL was executed without any input from, con- 26 per cent stake in NDTV in terms of SEBI’s
the development only on Tuesday. versation with, or consent of the NDTV founders, Takeover Regulations. Adani Group said in a re-
In a statement that came soon after Adani who, like NDTV, have been made aware of this lease that AMNL’s wholly-owned subsidiary VCPL
Group announced that one of its subsidiaries will exercise of rights only today. As recently as yes- holds warrants of RRPR Holding Private Limit-
indirectly acquire a 29.18 per cent stake in NDTV, terday, NDTV had informed the stock exchanges ed entitling it to convert them into 99.99 per cent
the founder-promoters of the broadcasting com- that there was no change in the shareholding of its stake in RRPR.
pany said that a notice was issued to them with- founders,” the statement said. NDTV recorded a Revenue of Rs 421 crore
out any discussion. “Without any discussion with NDTV has “never compromised” on the heart with an EBITDA of Rs 123 crore and net profit
New Delhi Television Limited (NDTV) or its of its operations - its journalism. “We continue to of Rs 85 crore in FY22 with negligible debt. “This
founder-promoters, Radhika and Prannoy Roy, a proudly stand by that journalism”, it added. acquisition is a significant milestone in the journey
notice was served upon them by Vishvapradhan Earlier, an Adani Group arm had declared of AMNL’s goal to pave the path of new age me-
Commercial Private Limited (VCPL) stating that that it will indirectly acquire 29.18 per cent stake dia across platforms,” said Sanjay Pugalia, CEO,
it (VCPL) has acquired control of RRPR Hold- in NDTV through a subsidiary and make an open AMG Media Networks Limited.
ing Private Limited (RRPRH). This entity owns offer to acquire another 26 per cent of the shares. The company was recently incorporated to
29.18% of NDTV. It has been given two days to Vishvapradhan Commercial Private Limited set up a credible next generation media platform
transfer all its equity shares to VCPL,” the state- (VCPL), wholly owned subsidiary of AMG Me- with emphasis on digital and broadcast segments,
ment said. dia Networks Limited (AMNL) which is a 100 amongst others, the release said, adding VCPL,
VCPL has exercised its rights based on a loan per cent subsidiary of Adani Enterprises Limited which was recently acquired by AMNL, is its whol-
agreement it entered with NDTV founders Radhi- (AEL), has exercised the rights to acquire 99.5 per ly owned subsidiary. Adani Enterprises Limited
ka and Prannoy Roy in 2009-10, it added. cent of the equity shares of RRPR Holding Private (AEL) is the flagship company of Adani Group,
“The NDTV founders and the Company would Limited, a promoter group company of NDTV. one of India’s largest business organizations.

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