On Tuesday, November 22, the billionaire Gautam Adani-led Adani Group’s public offer to buy an additional 26% stake in news broadcaster New Delhi Television Ltd. will begin.
The offer, which is priced at ₹294 per share, will open on November 22 and close on December 5, said JM Financial, the company managing the offer on behalf of Adani Group companies. Edan’s open bid timeline was from October 17th to November 1st.
The offer price is 23.07% below Monday’s closing price of NDTV. Today, NDTV shares fell 5% to Rs 382.20 on the BSE.
In the last three months, the share price of NDTV touched a high of 5.0.85 on September 5, 2022.
According to reports, NDTV promoters Radhika Roy and Prannoy Roy (RRPR) may not offer any additional interest in the company in response to Adani Group’s public offer.
Earlier, on November 7, capital markets regulator Sebi approved a proposed open offer of Rs492.81 crore.
In August, a conglomerate led by India’s richest man, Gautam Adan, bought a little-known company that lent more than Rs00 crore to NDTV’s founders more than a decade ago in exchange for options that gave the company a 29.18 percent stake in a media company at any time.
Following this, VCPL, a company bought by the Adani Group, on October 17 announced a public offer to buy an additional 26% stake from minority shareholders in NDTV. However, the offer was delayed as the market regulator did not give approval to the open offer.
VCPL, along with AMG Media Networks and Adani Enterprises Ltd., offered to buy an additional 26%, or 1.67 million shares, at an offer price of Rs294 each per share.
The open offer’s full subscription value is Rs492.81 per share of Rs 294 NDTV’s promoters opposed the open offer and acquisition of VCPL’s stake, arguing that the deal could not go ahead without the nod of Sebi and the Income Tax Department.
The Adani Group, on the other hand, rejected claims that the sale of the shares required approval from the tax department.
“The decision to acquire NDTV was made in order to achieve the Adani Group’s goal of creating a credible next-generation media platform focused on the digital and broadcast segments, and NDTV is the right distribution and digital platform to realize this vision,” Adani Enterprises said earlier in a BSE statement.
The NDTV promoters also claimed that they were not fully aware of the takeover and that it was done without their consent.