Adani is going to buy a 29% share in NDTV and make an open offer for more

Adani Enterprises will make a public offer for a further 26% of the media company.

On August 23, the media division of the Adani Group declared that it will buy a 29.18 percent ownership in New Delhi Television Ltd. (NDTV) and make an open offer to buy an additional 26 percent of the company’s stock.

The acquisition of the 29.18 percent interest would take place indirectly through Vishvapradhan Commercial Pvt Ltd (VCPL), a fully owned subsidiary of Adani Enterprises Ltd.’s AMG Media Network Ltd (AMNL) (AEL).

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According to a news statement, VCPL has used its option to purchase “99.5 percent of the equity shares of RRPR Holding Private Limited,” a promoter company for NDTV that owns a 29.18 percent stake in the media group.

According to SEBI’s takeover rules, this will result in an open offer to purchase up to a 26 percent interest in NDTV, the business stated.

“VCPL, along with AMNL and AEL, will launch an open offer to acquire up to 26 percent stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011”, the release noted.

This “purchase is a critical milestone,” according to AMNL CEO Sanjay Pugalia, in the company’s mission to “pave the road of new age media across platforms.”

“AMNL aims to provide information and expertise to Indian people, customers, and foreigners with an interest in India. NDTV is the best broadcast and digital platform to carry out our goal due to its dominant position in news and strong and diverse reach across genres and geographies. We anticipate enhancing NDTV’s position as the industry leader in news delivery,” Pugalia added.

The three national news stations NDTV 24×7, NDTV India, and NDTV Profit are all operated by NDTV, which also has a significant web presence. In the fiscal year 2022, the company reported sales of Rs 421 crore, EBITDA of Rs 123 crore, and net profit of Rs 85 crore.

The price of NDTV’s shares at the BSE’s closing bell was Rs 374.70 a share, up 4.99 percent from the previous day’s close. The shares increased 3.09 percent to settle at Rs 369.75 on the NSE.

According to reports that Adani Group would acquire NDTV, the stock of the company reached a 52-week high in September of last year. At the time, the company asserted that its promoters were not in talks with any organisation about changing ownership or selling their position.