New Delhi Television Ltd (NDTV)’s promoter company RRPR Holding on Monday, in a disclosure to the stock exchanges, said that it has transferred 99.5% of its equity shares to Adani group owned Vishvapradhan Commercial (VCPL). The transaction was in consonance with a conversion notice which was issued by VCPL on 23 August, 2022.
On November 11, 2022, Adani group had announced it will launch an open offer to acquire an additional 26% of NDTV’s public shares. In August, Adani Enterprises Ltd’s subsidiary AMG Media Networks Ltd purchased Vishvapradhan Commercial Pvt Ltd (VCPL), which had lent Rs 403.85 crore to NDTV promoter business RRPR Holding Pvt Ltd in 2009 and 2010. Radhika Roy and Prannoy Roy were the owners of RRPR Holding.
RRPR provided warrants to VCPL in exchange for this interest-free loan, entitling it to convert them into a 99.9% share in RRPR. RRPR owned 29.18 percent of NDTV, hence Adani Group obtained a 29.18 percent stake in NDTV in this manner. Following the acquisition of VCPL for Rs 113.75 crore, the Adani Group declared an open offer to purchase another 26% interest in NDTV.
If Adani Group has indirect control over a stake that is more than 25%, it is required by Indian law to make an open offer to buy at least 26% more from current shareholders and give them the opportunity to withdraw.
This transfer of shares will now give Adani group control of 29.18% stake in NDTV. The conglomerate is also carrying out an open offer for another 26% in the media house. The open offer began on November 22 and has seen shareholders tender 5.3 million shares, or 31.78 per cent of the issue size of 16.7 million shares as of now.
NDTV has three national news channels –NDTV 24×7, NDTV India and NDTV Profit, besides having a strong online presence. The company recorded a revenue of Rs 421 crore in the financial year 2022, with an EBITDA of Rs 123 crore and a Net Profit of Rs 85 crore during the fiscal year.
The Adani Group on August 23 announced that its media arm would purchase a 29.18 per cent stake in New Delhi Television Ltd (NDTV), and made an open offer to acquire another 26 per cent of the shares in the media giant. Vishvapradhan Commercial Private Limited (VPCL), is company incorporated in 2008. In 2009, it offered unsecured loan to NDTV’s holding company, Radhika Roy Prannoy Roy Holding Private Limited (RRPRH) worth Rs 403.85 crore. RRPRH held 29% equity in NDTV. You can read in detail about the process here.
In an interview with the Financial Times, the world’s third richest person and the Chairman of the Adani Group, Gautam Adani, stated that the takeover of NDTV is not a business opportunity but rather a ‘responsibility’. Adani also expressed his intention to make NDTV an international brand and expand it having a global footprint. “Why can’t you support one media house to become independent and have a global footprint? India does not have one single to compare to Financial Times or Al Jazeera,” he remarked in the interview.
