Regulatory curbs do not apply to NDTV promoter group, says Adani group

NDTV claims the billionaire moved without its authorization, raising questions about the news channel’s editorial integrity in the wake of the action.

Adani Group today (26th August) refuted claims made by NDTV that the regulatory restrictions prohibited the founders Radhika and Prannoy Roy from selling their stake in the company.

NDTV claims the billionaire moved without its authorization, raising questions about the news channel’s editorial integrity in the wake of the action.

Advertisement

According to the company’s most recent regulatory filing, SEBI has banned the promoters from the securities market for a two-year period that ends on November 26, 2022, unless ongoing appeals were to be successfully resolved before then.

On Thursday, NDTV attempted to thwart Adani’s plans by asserting that the company’s founders, Prannoy and Radhika Roy, have been prohibited by the market regulator from purchasing or selling shares on the Indian securities market since 2020 and, as a result, cannot transfer the shares Adani is requesting.

On Tuesday, Adani Enterprises announced a bid to acquire NDTV through its subsidiary AMG Media Networks Limited (AMNL), after indirectly acquiring a 29.18% stake in the media company and making an open offer to its public shareholders to purchase an additional 26% stake at a price of 294 per share.

The NDTV promoters’ statement, which was released to stock markets on Thursday, has significance because the Adani group had requested a transfer of the 29.18% of the company’s shares held by promoters within two days through a holding company called RRPRH.

Before the Adani group’s buyout proposal announcement, NDTV’s share price on the Bombay Stock Exchange was 366.20. On Thursday, it increased 5% to settle at 403.70.

As part of a credit deal with the Roys inked in 2009–10, AMNL group has exercised warrants that are convertible into shares of RRPRH held by Vishvapradhan Commercial Private Limited (VCPL). The two NDTV founders and promoters personally own 32.26% of the business.