Adani's open offer for NDTV subscribed 32%

Mumbai: Adani Group's mandatory open offer to buy an additional 26% stake in New Delhi Television (NDTV) ended on Monday with public shareholders tendering 53.28 lakh shares, or 32%, of the 1.68 crore shares it offered to buy.

Once the ₹493-crore open offer goes through, the Gautam Adani-led conglomerate's stake in the news broadcaster will increase to 37.44%. In August, Adani acquired a 29.18% stake in the broadcasting company. As of September 30, 2022, promoters Prannoy Roy and Radhika Roy owned 15.94% and 16.32% stakes in the company.

The Adani Group must communicate the open offer's acceptance or rejection decision by December 19.

Shares of NDTV hit a 5% lower circuit on Monday to close at ₹393.7. The floor price of the open offer was set at ₹294 apiece.

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 the warrants to buy a 99.5% stake in RRPR Holdings.

On November 28, NDTV's promoter group vehicle RRPR Holding Private Ltd told exchanges it has issued shares on the same day constituting 99.5% of its equity capital to Vishvapradhan Commercial.

Last week, NDTV told stock exchanges that founders Prannoy Roy and Radhika Roy have resigned from the company's holding entity RRPR Holding Private Ltd which was acquired by the Adani Group.

The Roys continue to sit on the media company's board.