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Tag: adani ndtv deal

  • Adani open offer for NDTV: Over 18 lakh shares tendered on Day 2

    Adani open offer for NDTV: Over 18 lakh shares tendered on Day 2

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    The second day of the open offer by Adani Group for acquiring shares of New Delhi Television Limited (NDTV) saw nearly 18.03 lakh shares being tendered in the offer even as the offer price remains significantly lower than the market price.

    Data from the stock exchange showed that a total of 18,02,888 equity shares were tendered on Wednesday representing 10.76 per cent of the maximum offer size of nearly 1.7 crore equity shares.

    If the total number of equity shares of the media major is taken into consideration, the quantum of shares tendered on Wednesday account for nearly 2.8 per cent of the company.

    On Wednesday, shares of NDTV lost 4.61 per cent or Rs 17.35 to end the day at Rs 358.90, still trading significantly higher than the open offer price of Rs 294 per share.

    This assumes significance as it was widely believed that the open offer would not see the Adani Group managing to acquire any further shares due to the deep discount of the offer price when compared to the prevailing market price.

    As per the latest shareholding structure of NDTV, a total of 11 foreign portfolio investors (FPIs) hold a cumulative stake of 14.72 per cent in the company. Incidentally, LTS Investment Fund, which has a stake in other Adani Group entities, holds 9.75 per cent stake or 62.85 lakh shares in NDTV.

    The open offer has been triggered after Adani Group indirectly bought a stake of 29.18 per cent in the media company by acquiring the shares of Vishvapradhan Commercial Private Limited, which, in turn, acquired the shares held by RRPR Holding Private Limited, a promoter group company of NDTV.

    The offer will remain open till December 5.

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  • NDTV takeover: Adani Group to launch open offer on November 22

    NDTV takeover: Adani Group to launch open offer on November 22

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    Adani Group has announced that its open offer to acquire an additional 26 per cent stake in NDTV will be open for subscription from November 22 to December 5. 

     The open offer for acquiring 1.67 crore equity shares with a face value of Rs 4 will tentatively close on December 5, 2022, said JM Financial, which is managing the offer. The price fixed for the deal is Rs 294 per share. Earlier, the Gautam Adani-led company had said that it will launch its open offer for acquiring stake in NDTV from October 17 to November 1. 

    On the other hand, the last date for filling the post offer report with the Securities and Exchange Board of India (Sebi) has also been revised to December 26, 2022. 

    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 of 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 a 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. 

    Also read: NDTV takeover: Adani Enterprises writes to SEBI, says committed to open offer

    Days after the announcement, NDTV’s founder promoters — Radhika Roy and Prannoy Roy — argued that the deal cannot go ahead without Sebi’s nod.  

    As per details, Sebi restrained NDTV founders in an order passed on November 27, 2020 from the securities market for two years and that period ends on November 26 this year. 

    NDTV founders had said as restrictions are in order, hence prior written approval from Sebi was required for Vishvapradhan Commercial Private Limited (VCPL) for the exercise of the conversion option on the warrants. 

    On this, RRPR Holding Ltd and Adani group moved Sebi, seeking clarity on the applicability of the regulator’s earlier order regarding the conversion of warrants into shares. 

    Adani group had rejected NDTV’s claim saying that promoter entity RRPR Holding is not a part of the regulator’s order that restrained Prannoy and Radhika Roy from accessing the securities market. 

    The Adani Group first took over VCPL from its owner and exercised the option to convert unpaid debt into a 29.18 per cent stake in the news channel company. The promoters of NDTV had claimed that they were completely unaware of the takeover. 
     

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  • NDTV takeover: Adani Enterprises writes to SEBI, says committed to open offer

    NDTV takeover: Adani Enterprises writes to SEBI, says committed to open offer

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    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. 

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