NDTV surges 5% on optimism over Adani stake buy

Mumbai: Shares of New Delhi Television (NDTV) jumped 5% on Wednesday - the highest tradeable limit for the day - on optimism over the Adani Group's move to buy a majority stake in the media company. The stock closed at ₹384.5, its highest closing since July 31, 2008, after the Gautam Adani-owned conglomerate launched an open offer to buy 26% from NDTV's shareholders on Tuesday evening.

Bankers and analysts said shareholders may seek a higher price from the Adani Group to sell their shares as the open offer price of ₹294 is below the current market price.

Some of the large public shareholders in NDTV include LTS Investment Fund, which owned 9.75% stake in the company as on June 30. Visaka India EIF Fund held 4.42%, while Chennai-based investor Dolly Khanna owned over 1% in the company. About 30,000 retail shareholders held a 12.5% stake in the company.
"The Adani Group will have to increase the offer price at least by 20% for a successful open offer," said a banker who did not want to be identified. "They may do it when they actually launch the open offer after all approvals."

A senior money manager said the open offer could be a 'long-drawn affair' as investors will not be in a hurry to tender their shares. "I don't think anybody will sell in the open offer because the momentum is in favour of Adani Group shares," said the money manager on condition of anonymity.

An Adani spokesperson did not respond to an email till press time.

The stock was trading between ₹50 and ₹100 during 2011-2020.

The Adani Group said on Tuesday its subsidiary AMG Media Networks Ltd bought Vishvapradhan Commercial Pvt Ltd (VCPL), which had lent ₹403.85 crore to RRPR Holding, a promoter group company of NDTV.