NDTV Shares Locked In Upper Circuit After Adani Media Arm Buys Stake In It

Shares of New Delhi Television Ltd. In early trade on August 24, 2022 were seen locked in upper circuit. The stock after zooming 5% also hit its fresh 52-week high of Rs. 588.2 per share on the NSE.

Adani Group companies have acquired a stake in NDTV Ltd, indirectly by buying Vishvapradhan Commercial Pvt Ltd (VCPL), an entity which owned convertible debentures in RRPR Holding Pvt Ltd (for a loan amounting to Rs. 404 crore, it extended to the promoter holding company in FY10) that, in turn, owned 29.18% of NDTV. The Adani Group and Vishvapradhan have also announced an open offer at Rs. 294 per share for 26% stake, representing a 28% discount to NDTV's Rs. 376 closing price.

As per ICICI Direct-the brokerage house, the deal is said to have a neutral impact and goes on to say that, "The existing promoter group (Roy family) of NDTV will have a residual stake of 32.3%. They have claimed Adani group firms had acquired the stake without consulting its promoters. Thus, there may be some legal repercussion ahead. The acquisition is in line with Adani group's intent to foray into media and stake
acquisition in Quint, recently.