Beginning on November 22, the open bid would end on December 5.
From August 23, the day the Adani group announced the buyout bid, to December 1, the price of shares of New Delhi Television Ltd. (NDTV) increased by more than 16%. They are currently trading at approximately 440 per share on the BSE.
In its initial hostile takeover approach for NDTV, the diversified Adani company indirectly acquired a 29.18% stake in the broadcaster. It then made an open offer to buy an additional 26% ownership. Beginning on November 22, the open bid would end on December 5.
Since early July, when rumors that the Adani group may be considering an acquisition of the media business first surfaced, NDTV shares have been in a rising trend. As the Adani Group approached taking over the television network, NDTV founders Prannoy Roy and his wife Radhika Roy resigned from their positions as directors of promoter group vehicle RRPR Holding Private Limited.
Having taken over RRPR Holdings, the NDTV promoter firm that holds 29.18% of the broadcaster’s shares, Adani Group could push for the nomination of its directors to the NDTV board through its subsidiary Vishvapradhan Commercial Pvt. Ltd (VCPL).
Adani Group has grown to be the sole shareholder of NDTV, moving it one step closer to seizing control of the business, even though the open offer failed to pique investor interest for the second session in a row on Wednesday.
In addition to acquiring RRPR Holdings from the Roys and obtaining a 29.18% share in NDTV, Adani Group also purchased 8.26% of the company’s stock as of 30 November through an open bid that was sparked by its purchase of VCPL in late August. When an entity buys more than 25% of a firm, an open offer is made.
NDTV’s single largest shareholder, the Adani Group, now holds 37.44% of the company through its wholly-owned subsidiary VCPL, followed by Radhika and Prannoy Roy, who hold a combined 32.26%.
Sudipta Bhattacharya and Sanjay Pugalia, two Adani Group executives, and Senthil Chengalvarayan, a journalist and independent director of Quintillion Business Media Pvt., a different media company in which Adani purchased a share earlier this year, were named by RRPR to the board.