1.8 million shares tendered on day two of Adani's NDTV open offer

The Adani group's open offer for additional shares in New Delhi Television (NDTV) saw some takers on day two. 1.8 million shares were tendered on Wednesday, stock exchange data shows.

The open offer will conclude on December 5. However, the names of those who tendered their shares will be disclosed on the final day of the open offer. NDTV promoters, Prannoy Roy and Radhika Roy directly hold 15.94 per cent and 16.32 per cent stakes each in the company. This amounts to 32.26 per cent stake when combined.

In August, Adani group acquired Vishvapradhan Commercial Pvt Ltd (VCPL). VCPL held warrants that allowed it to acquire a 29.18 per cent stake in NDTV at any time. After acquisition of VCPL, Adani group expressed an intention to convert these warrants into stake.

Foreign portfolio investors, on the other hand, held 14.72 per cent stake in the company, and individuals and other entities held a total of 23.84 per cent stake in the firm.

"The picture will become clear once the open offer concludes regarding who has tendered their shares," said Shriram Subramanian, managing director, InGovern, a Chennai-based proxy advisory firm, said.

"Having said that, the Adani group will now become the single largest shareholder in the company, with close to 40 per cent stake in the company. This gives them significant power to reconstitute the board," he said.

On Wednesday, shares of NDTV closed trade at Rs 358.90 apiece on the BSE, down 4.61 per cent over the previous day's close. Since Thursday, the NDTV stock price has fallen by 15.24 per cent on the BSE. But the trading price, based on Wednesday's close, still remains higher than the open offer price by 22.07 per cent, data from BSE shows.

On Friday, NDTV's independent directors had asked shareholders to carefully evaluate the open offer, since the trading price was higher than the open offer price.

"The open offer price is in accordance with the SEBI SAST Regulations. On that basis, it appears to be fair and reasonable," they said. "However, the committee of independent directors would like to draw attention to the fact that the shares of the target company (NDTV) have been consistently trading on the stock exchanges at prices which are significantly higher than the offer price," they said.

Last month, the Adani group had written to the Securities and Exchange Board of India (SEBI) re-affirming its commitment to complete the open offer process for additional shares in NDTV. After delaying it, the markets regulator had finally given its approval to the open offer earlier this month.