NDTV investors tender shares for nearly a quarter of open offer by Adani

Investors in New Delhi Television (NDTV) have tendered 39.35 lakh shares of the company as of the fourth day of the open offer announced by the Adani Group. The shares submitted so far represent over 23% of the 1.68 crore shares that Adani must offer to buy from public stakeholders of the news broadcaster. The open offer, which opened on November 22, will conclude on December 5.

The open offer price of ₹294 is about 24% below the current market price of NDTV. The stock ended 5% higher on Friday at ₹386.80.

Adani Group's mandatory open offer to buy an additional 26% stake of NDTV's public shareholders follows the conglomerate's move in August to buy Vishvapradhan Commercial Pvt Ltd (VCPL), which had lent ₹403.85 crore to RRPR Holding, a promoter group company of NDTV. This entity holds a 29.18% stake in NDTV. RRPR had issued warrants to VCPL that allowed it to convert the warrants into a 99.9% stake in RRPR in case the loan was not paid back. VCPL, now a wholly-owned subsidiary of Adani firm AMG Media Networks, has exercised warrants to buy a 99.5% stake in RRPR Holdings.

The offer size is around ₹493 crore at a floor price of ₹294 a share. Earlier, market participants were doubtful if investors would tender shares in the open offer at all since the stock price was trading way higher than the purchase price. If fully subscribed, the ₹492.81 crore open offer will increase Adani group's holding in NDTV to 55.18%.

It is not clear if Radhika Roy and Prannoy Roy, the founders of NDTV, will tender their shares in the open offer. Radhika Roy and Prannoy Roy held 16.32% and 15.94% stakes in NDTV on September 30, 2022.

Foreign portfolio investors held a 14.72% stake in NDTV on September 30, 2022, whereas domestic corporate bodies held 9.86%. Retail investors owned 13.34% as of September 2022.