The media group’s promoters have asserted that the deal cannot go ahead without SEBI’s nod
The media group’s promoters have asserted that the deal cannot go ahead without SEBI’s nod
NDTV promoter entity RRPR Holding Private Ltd. and Adani Enterprises’ indirect subsidiary Vishvapradhan Commercial Private Ltd. (VCPL) have written to markets regulator SEBI seeking clarification on whether any regulatory restrictions prohibit the news network’s founders from selling a majority stake to Adani Enterprises.
RRPR Holding Private Ltd, the promoter group company of NDTV Ltd. and Vishvapradhan Commercial Private Ltd (VCPL), the wholly owned subsidiary of AMG Media Network Ltd of Adani Enterprises Ltd (AEL) have separately reached out to market regulator the Securities & Exchange Board of India (SEBI) seeking clarity on the takeover bid.
“VCPL has received a reply on behalf of RRPR whereby RRPR has reiterated that Mr. Prannoy Roy and Mrs. Radhika Roy [the network’s founders] are prohibited by SEBI, vide its order dated November 27, 2020, from accessing the securities market for a period of two years,” AEL said in a filing with stock exchanges.
“It further states that since SEBI alone can determine whether the restrictions contained in the SEBI order apply to the transaction, RRPR has addressed a letter dated August 28, 2022 to the SEBI to determine if the warrants can be converted into equity shares ahead of the November 26, 2022 deadline laid out in the SEBI Order, and that any further action to be taken, can only be based on the SEBI response,” the company said in the filing.
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“VCPL has also written a letter dated August 29, 2022 to SEBI, requesting SEBI to help provide clarity, certainty and avoid confusion in the minds of public shareholders of NDTV that has arisen due to the stand taken by RRPR and issue appropriate response to RRPR clarifying that the SEBI order does not restrain RRPR from allotting shares to VCPL,” the filing added.
On August 23, the Adani Group announced acquiring a 29.18% stake in NDTV through the acquisition of VCPL, which holds a 99.99% in RRPR Holding. The media group’s promoters have asserted that the deal cannot go ahead without SEBIi’s nod.
Meanwhile, the NDTV stock on Monday gained 4.99% on the BSE to close at ₹445 a share. VCPL has made an open offer to buy 26% of NDTV at ₹294 a piece. Considering the developments, NDTV had postponed its AGM by a week to September 27. The stock gained 4.99% to close at ₹445 a share on the BSE on Monday.
