 "Oswal group initiates sale of NDTV stake at 3.5 times returns")
Oswal group, the Delhi-based business group founded by late businessman Abhey Oswal, is in the process of selling its stake in listed broadcaster New Delhi Television (NDTV).
Anil Bhalla, managing director, Oswal Greentech told Business Standard, “We are in the process of selling. We will be able to share further details later in the day.”
An NDTV spokesperson declined to comment.
NDTV shares were up by over 13% at Rs 90.95 in early trade on Monday. Over 6.6 million shares had traded while writing this report. Oswal Greentech holds 9.1 million shares amounting to 14.17 % stake in NDTV as of June 30. It is not clear if the entire stake was being offloaded on Monday or some of it had been sold earlier. At current levels, the stake is valued at about Rs 82 crore, suggesting a handsome returns on the five-year-old investment. In December 2011, the Oswals, who have interests in petrochemicals, fertilisers and entertainment, bought the 14.2% stake for Rs 24.24 crore.
Group company Oswal Greentech acquired Around 9.14 million shares of NDTV from Merrill Lynch Capital Markets and Nomura Capital in a series of bulk deals at Rs 26.60 a share. At Monday’s prices, Oswals would have made around 3.5 times that amount.
The move comes five months after the sudden demise of 67-year old Oswal while on a foreign trip. While his wife Aruna Oswal has taken over the reins of the group. Eldest son Pankaj Oswal had laid claim to his father’s legacy before moving to Australia to fight tax and other cases there. Oswal’s daughter Shallu is married to industrialist Naveen Jindal.
Oswal had set up Lucky Star Entertainment for his son, who had interest in music, but later expanded to the movie business making well-known flicks such as ‘Pinjaar’.