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Adani stake in NDTV | Company says SEBI order restrained Prannoy, Radhika Roy from accessing the securities market – The Hindu

The two-year period for which SEBI has barred NDTV’s founder-promoters from dealing in their shares directly or indirectly, expires on November 26, 2022

The two-year period for which SEBI has barred NDTV’s founder-promoters from dealing in their shares directly or indirectly, expires on November 26, 2022

In a statement to the Securities and Exchange Board of India (SEBI), NDTV has said that a SEBI order dated November 27, 2020, had restrained its founder-promoters Dr. Prannoy Roy and Radhika Roy from accessing the securities market, and further prohibited buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever; for a period of 2 years, which expires on November 26, 2022.

The two-year period for which SEBI has barred NDTV’s founder-promoters from dealing in their shares directly or indirectly, expires on November 26, 2022.

The statement assumes significance as NDTV’s holding company RRPRH had been told to transfer its 29.18% shares in the news broadcaster within two days of Tuesday’s announcement by the Adani group’s media subsidiary AMNL that it had indirectly acquired the 29.18 % stake in NDTV, triggering an open offer to take another 26% stake in the media house.

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NDTV also told the exchanges that in compliance with SEBI (SAST) Regulations of 2011, the details of the SEBI order will be provided to Vishvapradhan Commercial Private Limited (VCPL), the company acquired by AMNL, which had exercised its right to convert warrants into shares in NDTV’s promoter firm RRPR Holding Private Limited. The warrants were issued as part of a loan agreement entered by NDTV promoters Mr. Roy and Ms. Radhika Roy, who continue to hold a 32.26% stake in the business, with VCPL in 2009-10.

Shares in NDTV Ltd jumped the maximum permitted 5% to a 14-year high on Wednesday after billionaire Gautam Adani’s conglomerate moved to take a near 30% stake in the media group that could eventually lead to it taking control.

The shares surged far beyond the price Adani Group said it would pay in a subsequent mandatory open offer that could take its stake over 55%.

Adani Group is exercising its right to buy a 29.18% stake in NDTV based on a loan agreement with the NDTV founders in 2009-10 under which a company now owned by Adani can buy the stake from a company owned by the Roys. The stake purchase would leave the Roys with 32% of NDTV, but would also trigger an open offer from Adani for another 26%, in line with regulations.

NDTV stock jumped to as much as 388.20 rupees on Wednesday, its highest since August 2008. The Mumbai exchange does not allow the stock to rise more than 5% in a day. However, Adani has said its open offer would be 294 rupees per share, well below the current market price and valuing the extra 26% stake at about 4.93 billion rupees.