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    NDTV shares hit 5% lower circuit as Adani Group's open offer kicks off today

    Synopsis

    Adani had acquired the little-known company that lent over Rs 400 crore to NDTV's founders more than a decade ago in return for warrants that allowed the company to acquire a 29.18% stake in the newsgroup.

    NDTV shares hit 5% lower circuit as Adani Group's open offer kicks off todayIANS
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    Shares of media firm New Delhi Television (NDTV) hit the 5% lower circuit to Rs 363.10 in Tuesday’s intraday trade on BSE after billionaire Gautam Adani’s conglomerate's open offer to acquire an additional 26% shareholding in NDTV from the market was to start from today.

    The price of the offer was fixed at Rs 294 per share, 19.45% lower than the current market price of Rs 365 per share.

    The offer will close on December 5, according to a notice by JM Financial, which is managing the offer on behalf of Adani Group firms.

    India's capital markets regulator, Sebi, had last week approved the proposed Rs 492.81 crore-open offer, marking a key milestone in the takeover battle between Asia’s richest person and the broadcaster’s founders.

    The acquisition bid was triggered after Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMG Media Network Ltd, exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Pvt Ltd, a promoter group company of NDTV, earlier in August.

    Adani had acquired the little-known company that lent over Rs 400 crore to NDTV's founders more than a decade ago in return for warrants that allowed the company to acquire a 29.18% stake in the newsgroup.

    VCPL, which the Adani group bought out, had announced that it would launch an open offer on October 17 to buy the additional 26% stake from minority shareholders of NDTV. However, the offer was delayed since Sebi had not given its go-ahead for the offer.

    The open offer was earlier scheduled to run from October 17-November 1.

    If fully subscribed, the open offer will amount to Rs 492.81 crore at Rs 294 per share.

    "The decision to acquire NDTV was arrived at in furtherance of the Adani Group’s objective to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision," Adani Group's flagship firm Adani Enterprises had said in October.

    At 11.16 am, the scrip was trading 4.5% lower at Rs 365 over its previous day’s closing price of Rs 382.20 per share.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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