Wednesday, November 30, 2022

Prannoy Roy and Radhika Roy have left the NDTV holding company, and the Adani arm has taken control

Prannoy Roy, Radhika Roy quit NDTV holding company, Adani arm gains control


 MUMBAI:Both Prannoy Roy and Radhika Roy, the company's founders, resigned from the board of RRPR Holdings on Tuesday, marking a significant turning point in the Adani Group's attempt to acquire NDTV. The main holding company of the promoters, RRPR Holdings holds a 29.2% stake in the media company.According to a disclosure on the BSE late on Tuesday, three new directors, Sudipta Bhattacharya, Sanjay Pugalia, and Senthil Sinniah Chengalvarayan, were added to the company's board at the same time.


RRPR Holdings informed stock exchanges on Monday that it had converted Vishvapradhan Commercial (VCPL) warrants into equity shares.The promoter's 29.2% stake in NDTV will now be held by VCPL, a company controlled by the Adani Group, as a result of this conversion into equity shares.


Prannoy Roy has been offered a position as chairman of the NDTV board by the Adani Group, according to sources.


To put things in perspective, about a decade ago, the promoter entity RRPR Holdings gave VCPL warrants that could be converted into equity shares in order to get a loan that was used to run NDTV.VCPL would take nearly complete control of RRPR Holdings if all of these instruments were converted into shares.The Adani Group took control of VCPL in May of this year and requested that the warrants be converted into equity shares.Additionally, this triggered Sebi's takeover clause, which required the Adani Group to make an open offer to purchase an additional 26% stake in NDTV from the market.


To comply with Sebi's takeover regulations, VCPL and two Adani Group companies—AMG Media Networks and Adani Enterprises—launched an open offer on November 22 to acquire an additional 26% stake in NDTV.Sebi had granted Adani Group permission to proceed with its open offer for NDTV on November 11 at a price of Rs 249 per share.


The stock has risen since the Adani Group announced its acquisition of NDTV; on Tuesday, it closed 5% higher at Rs 426 on the BSE.According to BSE disclosures, Adani Group has already acquired nearly 32% of NDTV's equity capital as of Tuesday, despite the substantial discount to the open offer price.On December 5, the open offer will be closed.

Catch Daily Highlights In Your Email

* indicates required

Post Top Ad