 "Oswals sell part-stake in NDTV for Rs 51 cr")
The Delhi-based Oswal group, founded by the late Abhey Oswal, sold a major part of its stake in listed broadcaster New Delhi Television (NDTV) on Monday.
Oswal Greentech, the listed entity that owned the shares, sold 6.285 million shares or 9.75 per cent stake, for around Rs 51 crore.
According to bulk deal data on BSE, the shares were picked up by the LTS Investment fund, a Mauritius-based foreign portfolio investor.
Anil Bhalla, managing director, told this newspaper: "We booked a profit of about Rs 33.8 crore.” He explained the company had decided to exit media investments, hinting the residual holding of 4.42 per cent could also be sold in due course. “This would help us focus on key projects in our core areas,” he added.
An NDTV spokesperson declined to comment. Shares of both companies rallied. NDTV shares closed on Monday with a gain of 11 per cent at Rs 91.65. A little over 7.05 million shares were traded on the BSE; the National Stock Exchange accounted for 2.1 mn. Oswal Greentech held 9.1 mn, shares amounting to 14.17 per cent stake in NDTV, as of June 30. It shares closed with a gain of 4.9 per cent at Rs 27.70.
Sources said as the deal happened at higher levels, these could have been at pre-determined prices. However, Bhalla said the deals were done on the exchange platform and he did not know who the buyers were.
In December 2011, the Oswals, who have interests in petrochemicals, fertilisers and entertainment, bought the 14.17 per cent stake for Rs 24.24 crore. Oswal Greentech acquired around 9.14 mn 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 deal and the up-move has arrested the downward spiral of the NDTV stock, losing steadily from the Rs 120-odd it had hit in March. Last week, NDTV said it had won an appeal in one of the tax cases against it.
Oswal Greentech, the listed entity that owned the shares, sold 6.285 million shares or 9.75 per cent stake, for around Rs 51 crore.
According to bulk deal data on BSE, the shares were picked up by the LTS Investment fund, a Mauritius-based foreign portfolio investor.
Anil Bhalla, managing director, told this newspaper: "We booked a profit of about Rs 33.8 crore.” He explained the company had decided to exit media investments, hinting the residual holding of 4.42 per cent could also be sold in due course. “This would help us focus on key projects in our core areas,” he added.
An NDTV spokesperson declined to comment. Shares of both companies rallied. NDTV shares closed on Monday with a gain of 11 per cent at Rs 91.65. A little over 7.05 million shares were traded on the BSE; the National Stock Exchange accounted for 2.1 mn. Oswal Greentech held 9.1 mn, shares amounting to 14.17 per cent stake in NDTV, as of June 30. It shares closed with a gain of 4.9 per cent at Rs 27.70.
Sources said as the deal happened at higher levels, these could have been at pre-determined prices. However, Bhalla said the deals were done on the exchange platform and he did not know who the buyers were.
In December 2011, the Oswals, who have interests in petrochemicals, fertilisers and entertainment, bought the 14.17 per cent stake for Rs 24.24 crore. Oswal Greentech acquired around 9.14 mn 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 deal and the up-move has arrested the downward spiral of the NDTV stock, losing steadily from the Rs 120-odd it had hit in March. Last week, NDTV said it had won an appeal in one of the tax cases against it.