Sebi approves Adani's open offer for 26% additional stake in NDTV

Last week, the Adani group had revised the open offer timeline to Nov 22; offer price of Rs 294 a share is at a 24% discount to NDTV's closing price of Rs 365.85 on Monday

Market regulator Securities and Exchange Board of India (Sebi) on Monday approved Adani Group's open offer for 26 per cent additional stake in broadcaster New Delhi Television (NDTV) as per a statement on Sebi's website.

The Adani group had revised the open offer timeline last week, setting the date as November 22 to December 5. It was to be launched on October 17, ending on November 1, but was delayed since Sebi had not given its approval to the open offer of Rs 492.81 crore.

The open offer price of Rs 294 a share is at a 24 per cent discount to NDTV's closing price of Rs 365.85 apiece on Monday.

In the last three months, NDTV's stock price has run up by nearly 22 per cent following plans unveiled by the Adani group to acquire a 29.18 per cent stake in the news network, through the acquisition of Vishvapradhan Commercial (VCPL), which holds a 99.99 per cent stake in NDTV promoter firm, RRPR Holding. This plan had triggered the open offer.

Basis Monday's closing price, NDTV's market capitalisation stands at Rs 2,358.68 crore.

As on September 30, 2022, NDTV’s Prannoy Roy and Radhika Roy directly held 15.94 per cent and 16.32 per cent stakes in the company each. RRPR Holding, at the centre of the acquisition, owned 29.18 per cent.

Some of the other shareholders in the company include Mauritius-based foreign portfolio investors, namely, LTS Investment Fund and Vikasa India EIF I Fund, which hold 9.75 per cent and 4.42 per cent stakes respectively in the firm.

NDTV's shareholders also include 29,691 individuals who have each put in up to Rs 2 lakh in the company, and 947 entities, which own 23.83 per cent of its shareholding.

Last month, the Adani Group had written to Sebi re-affirming its commitment to complete the open offer process for additional shares in NDTV.

In its letter to Sebi, the Adani group said that it intended to complete the open offer regardless of the status of the share transfer by RRPR to VCPL. It had also urged Sebi provide its approval and observations to the open offer, which have now finally come.