Adani Has Acquired a 29% Stake In NDTV

Adani Has Acquired a 29% Stake In NDTV

Gautam Adani and his firms purchased a 29% stake in broadcaster NDTV Ltd and launched an open bid to buy an additional 26% from shareholders, as obliged by legislation.

Introduction

Gautam Adani, Asia’s richest man, signaled severe intent to enter India’s media and entertainment business by acquiring a 29% interest in broadcaster NDTV and launching an open bid to purchase an additional 26% from shareholders required by law.

The acquisition culminated months of speculation about a prospective acquisition, which saw the NDTV stock rise fivefold in nine months (from 75.55 on 1 December to 376.55 on BSE on Tuesday). However, following AMG(Media Network) AMN’s statement, NDTV stated in a stock market filing that the news came without any notice to the firm or its founders.

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Details Regarding Ndtv

New Delhi Television Ltd is an Indian left-wing news organization specializing in broadcast and internet news dissemination. The business is a heritage brand in India that helped establish independent news broadcasting. It is also recognized for establishing the first 24-hour news channel and the first lifestyle channel in the nation. It owns and operates NDTV India and NDTV 24×7, two broadcast news stations.

Prannoy Roy, an economist, and Radhika Roy, a journalist, a husband and wife team from Kolkata, created NDTV in 1984. When television broadcasting was a state monopoly, it started as a production company for news segments and was hired by the public broadcaster Doordarshan and international satellite networks. It later became India’s first independent news network. In 1998, the firm and Star India created the first 24-hour news channel.

Indirect Acquisition Of NDTV By VCPL

The Popular New Delhi Television LTD. (NDTV), a move the TV news organization said was made without its approval. Indian billionaire Gautam Adani’s conglomerate, stated on Tuesday that it intends to hold a majority share in the famous New Delhi Television (NDTV).

According to preparations for a subsequent open sale for a holding of another 26% following Indian rules, a unit of the Adani Group said it had utilized financial rights to buy a 29.18% interest in NDTV. The Adani Group’s action, according to a statement from NDTV released after the news stating that it was done without any participation from, communication with, or approval of the NDTV founders.

By purchasing Vishvapradhan Commercial Pvt. Ltd. (VCPL), which held convertible debentures in RRPR Holding Pvt. Ltd., which in turn held 29.18% of NDTV Ltd., Adani Group companies indirecHow many shares Adani have in NDTV?tly acquired the stake in NDTV. In exchange for a loan it provided to the promoter holding firm in the sum of ₹404 crores, Vishvapradhan purchased the debentures in 2009–2010.

An organization that purchases more than 25% of the stock in a publicly listed firm is required by Indian securities legislation to make an open offer to public shareholders to purchase the remaining 26%. According to Sebi’s acquisition procedures, Adani Group and Vishvapradhan declared an open offer for 294 rupees per share, or 28% less than NDTV’s closing price of 376 rupees on the same day.

VCPL To Make Public Offer To Acquire 26% Of NDTV

Adani said its future open offer would be for 294 Indian rupees ($3.68) per NDTV share, which would be worth 4.93 billion rupees; however, it did not provide financial information regarding the Group’s intended purchase of a 29.18% stake. The open offer price is 20.5% less high than NDTV’s Tuesday closing price of 369.75 rupees.

Radhika and Prannoy Roy were not in talks with any organization about changing their ownership or selling their part in NDTV, the network stated in a stock market report on Monday. They still own 61.45% of NDTV jointly and severally, according to the statement.

An organization that purchases more than 25% of the stock in a publicly listed firm is required by Indian securities legislation to make an open offer to public shareholders to purchase the remaining 26% of the equity. To purchase 26% of NDTV from public shareholders for Rs 294 a share, or a total of Rs 483 crore, VCPL will have to make an open bid.

Adani Group Enterprises Are Overleveraged

According to Fitch group unit CreditSights, the billionaire Gautam Adani-led conglomerate is severely indebted and in danger of becoming caught in a debt trap as a result of its aggressive borrowing to make significant investments in several companies, some of which it lacks demonstrated competence.

Adani Group is reportedly expanding into more novel and unrelated industries, which is extremely capital-intensive and raises worries that execution monitoring may be dispersed too thinly. The combined market capitalization of the Adani Group firms has surpassed that of the Mukesh Ambani Group companies, which was valued at 17.82 trillion rupees. Airports, data centers, healthcare services, cement, and green energy are now part of Adani Group’s rapidly expanding portfolio of enterprises, which also includes seaports, airports, and energy.

State Bank of India helped Adani Enterprises secure $12,770 crore to finance its greenfield project in Navi Mumbai. In order to finance phase 1 of its greenfield copper refinery project in Gujarat, SBI has also provided a further loan of 6,000 crores. In order to finance capital expenditures and development at six airports run by Adani Airport Holdings, the business additionally secured a $250 million loan from Standard Chartered Bank and Barclays Bank (AAHL).

Airports, cement, copper refining, data centers, green hydrogen, petrochemical refining, highways, and solar cell manufacturing are just a few of the new emerging industries in which Adani Enterprises L has made significant investments during the past five years.

In the near future, it intends to join the enterprise data in the telecom market (now for internal use) and has ambitious growth goals for its green hydrogen and airport businesses. The Group also revealed plans to build a 30 million tonne integrated alumina refinery and 4.1 million tonnes per year refinery earlier this month.

Conclusion

Prannoy and Radhika Roy, who founded NDTV, possess 32.2% of the company’s shares, while public investors have 38.55%. The business published its results for the fiscal year that ended in March 2022 and reported 421 crores in revenues and 85 crores in net profit. Then came the news that VCPL had used its convertible warrants, acquiring 99.5% of RRPR Holdings and, therefore, 29.18% of NDTV’s stock. The open offer resulting from the purchase was also declared by Vishvapradhan and the Adani businesses.