NDTV hits upper circuit for 5th straight day, stock jumps 30% in 6 days

Shares of broadcaster New Delhi Television (NDTV) hit 5% upper circuit to Rs 470.05 in Thursday’s trade. The stock has jumped 30% in the last six days after Adani Group’s open offer to take over control of NDTV began last week.

NDTV’s shares hit their upper circuit limit of 5% for the fifth straight day. With no sellers in sight, the stock was trading at Rs 470.05 on Thursday morning. The multibagger is up 308% so far in the calendar year 2022 but the stock hardly has any analyst coverage.

Adani's open offer price to buy an additional 26% stake in NDTV at Rs 294 per share is way below the current market price. The open offer, which began on November 22, closes on December 5, 2022. Exchange data showed that the offer has been subscribed 0.32 times so far.

On Tuesday, channel's founders and promoters Prannoy Roy and Radhika Roy also resigned from their positions as directors on the board of RRPR Holding Private Limited (RRPRH).

The resignation came after NDTV said an entity backed by the founders had issued shares to a unit of Adani Group, taking the billionaire Gautam Adani-led conglomerate a step closer to taking over the media firm.

The promoter group vehicle, which owns 29.2% and is the largest shareholder of NDTV, approved the appointment of Sudipta Bhattacharya, Senthil Sinniah Chengalvarayan and Sanjay Pugalia as directors on its board, NDTV said in a regulatory filing.

NDTV's latest shareholding pattern at the end of September quarter shows that promoters Prannoy Roy and Radhika Roy own 15.94% and 16.32% stake in the company. RRPR owns 29.18% stake in NDTV.

Markets regulator Sebi on November 7, 2022 granted its approval to the proposed Rs 492.81 crore-open offer.