New Delhi Television (NDTV) hit an upper circuit limit of 5% at Rs 384.50 after the Adani group launched takeover bid of the media company.
Vishvapradhan Commercial Private Limited (VCPL), wholly owned subsidiary of AMG Media Networks Limited (AMNL), holds warrants of RRPR Holding Private Limited (RRPR), entitling it to convert them into 99.9% stake in RRPR. AMNL is 100% subsidiary of Adani Enterprises Limited (AEL).
VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR.
RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV.
Further, VCPL, along with AMNL & AEL (persons acting in concert), launched an open offer to acquire up to 26% stake in NDTV at Rs 294 per share (based on Sebi's takeover guidelines), representing a 19.72% discount to NDTV's Rs 366.20 closing price on the BSE Tuesday (23 August).
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Meanwhile, NDTV said in a filing to the exchanges on Tuesday (23 August) evening that Adani group firms had acquired the stake without consulting its promoters.
"The NDTV founders and the company would like to make it clear that this exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only today."
NDTV founders Prannoy and Radhika Roy control 32.26% of shares in NDTV, while the public shareholders own 38.55%.
NDTV is a leading media house and it operates three national news channels - NDTV 24x7, NDTV India and NDTV Profit.
NDTV recorded a revenue of Rs 421 crore with an EBITDA of Rs 123 crore and net profit of Rs 85 crore in FY22 with negligible debt.
This acquisition is a significant milestone in the journey of AMNL's goal to pave the path of new age media across platforms stated Mr. Sanjay Pugalia, CEO, AMG Media Networks Limited. AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform to deliver on our vision. We look forward to strengthening NDTV's leadership in news delivery.
On a consolidated basis, net profit of NDTV rose 45.28% to Rs 23.23 crore on 26.72% rise in net sales to Rs 107.74 crore in Q1 June 2022 over Q1 June 2021.
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