NDTV shares hit 5% upper circuit as SEBI approves Adani Group's open offer

Shares of NDTV hit the 5% upper circuit at Rs 383.05 in Tuesday's trade after Adani Group obtained regulatory approval from Sebi to acquire a further 26% stake in New Delhi Television Limited. Vishvapradhan Commercial Private Limited (VCPL), AMG Media Networks Limited (AMNL) and Adani Enterprises are making an open offer at a price of Rs 294 per share to acquire up to 26% stake in NDTV.

The statement on the market watchdog's website suggested that Gautam Adani-led conglomerate's open offer received the Sebi go-ahead Monday. The company has revised the open offer launch date to November 22 and the same shall close on December 5.

As per the preliminary plan of the Adani Group, it intended to roll out the offer last month, but the same got delayed as it awaited Sebi's approval. The ports-to-power conglomerate initiated a hostile takeover bid for the media company after it acquired an indirect 29.18% stake in August.

"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 last month.

The Adani-led conglomerate will thus also take hold of a larger share in the country's media sector as it diversifies across sectors, including data centres, airports, cement etc.

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