The Adani Group has written to the market regulator Securities and Exchange Board of India (SEBI) saying that it is committed to its vision and intends to proceed with the open offer to buy an additional 26 per cent stake in New Delhi Television (NDTV) Limited. In a stock exchange filing, Adani Enterprises has said that VCPL has urged SEBI “to provide its observations on the Draft Letter of Offer filed in relation to the Open Offer, in accordance with the SEBI (SAST) Regulations.”
Also read: What is delaying Adani Group open offer for NDTV?
On August 23, Adani Group-backed Vishvapradhan Commercial Private Limited (VCPL) announced that that they will convert the Rs 400-crore loan given to RRPR (Radhika Roy Prannoy Roy) in 2009 into a 29 per cent stake in NDTV. It later added that it wanted to acquire additional 26 per cent shares from the public through an open offer from October 17. As VCPL held NDTV shares, upon its acquisition, the Adani Group is now the owner of 29 per cent stake in NDTV.
In 2009, VCPL and the Roys had agreed to a loan agreement, via which the media house borrowed Rs 403 crore without interest for 10 years by pledging their 29 per cent stake in NDTV. As the Roys could not pay back the loan, Adani Group after its takeover of VCPL opened the clauses in the loan agreement, whereby they could own a huge chunk of NDTV shares.
The open offer was supposed to launch on October 17, as per the advertisement by JM Financial, the firm which is managing it on behalf of Adani. However, the open offer was not launched on the said date.
Also read: SEBI approaches Supreme Court against NDTV, Roys over July 2022 SAT order
“While the Underlying Transaction has not been consummated due to the stance being taken by RRPR (the promoter of NDTV), VCPL is committed to its vision and intends to proceed with the open offer in accordance with the provisions of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (SEBI (SAST) Regulations), which require that the Open Offer be completed regardless of whether the Underlying Transaction has been consummated,” the Adani Enterprises has now said in its letter to SEBI.
Also, JM Financial has urged SEBI to ‘provide its observations’ on the draft letter of offer filed in connection with the Open Offer in accordance with SEBI (SAST) regulations.
The filing said JM Financial addressed the letter to SEBI on October 19, 2022, on behalf of VCPL. The open offer would tentatively close on November 1, JM Financial, the firm which was managing the offer, had informed earlier.
