Sebi approval not needed for buying NDTV shares: Adani Enterprises

Says any subsequent attempt to return money received or original warrant certificate will have no legal effect on exercise of warrants by VCPL

The Adani group on Friday said that news broadcaster NDTV does not need the Securities and Exchange Board of India’s (Sebi’s) approval to transfer the shares of its promoter entity, RRPR Holdings, to VCPL.

In a letter to the stock exchange, Adani Enterprises said VCPL does not agree with RRPR Holdings that prior written approval from Sebi is required for allotment of shares to VCPL on exercise of warrants.

It said on August 23, the amount of Rs 1,99,00,000, being the amount payable for the 19,90,000 equity shares of RRPR pursuant to exercise of warrants, has been paid by VCPL and received by RRPR. Any subsequent attempt by RRPR to return the money received or the original warrant certificate shall have no legal effect on the exercise of warrants by VCPL, which has been completed.

Adani Enterprises said the contentions raised by RRPR Holdings in a letter to VCPL are baseless, legally untenable and devoid of merit. “RRPR is therefore bound to immediately perform its obligation and allot the equity shares as specified in the Warrant Exercise Notice,” Adani said.

The Adani group was reacting to a stock-exchange filing made by NDTV on Thursday that said the capital market regulator, Sebi, in November 2020 had banned its promoters for two years from buying or selling shares.

Adani Enterprises said VCPL expressed surprise at the stand taken by NDTV in its letter from which it appears that NDTV has adopted the stand taken by RRPR (a promoter shareholder of NDTV). VCPL also informed NDTV that it has separately responded to RRPR on the said allegations.

VCPL, the proposed acquirer of NDTV, and AMG Media Networks and Adani Enterprises, had made an open offer on Tuesday for NDTV under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.