Adani group's ₹493 crore open offer for NDTV to start from November 22

November 21, 2022 06:22 pm | Updated 06:22 pm IST - New Delhi

The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad. File.

The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad. File. | Photo Credit: Reuters

Adani group's open offer to acquire an additional 26% stake in the media firm New Delhi Television (NDTV) from the market would start from Tuesday.

The offer, for which a price band of ₹294 per share has been fixed, will open on November 22 and closes on December 5, said a notice by JM Financial, the firm managing the offer on behalf of Adani Group firms.

Read | NDTV: the hostile takeover

Markets regulator SEBI on November 7 granted its approval to the proposed ₹492.81 crore-open offer.

The conglomerate, run by India's richest man Gautam Adani, in August acquired a little-known company that lent over ₹400 crore to NDTV's founders more than a decade ago in exchange for warrants that allowed the company to acquire a stake of 29.18% in the newsgroup at any time.

Post that, VCPL—the firm that the Adani group bought out—announced that it would launch an open offer on October 17 to buy an additional 26% stake from minority shareholders of NDTV. However, the offer was delayed since SEBI had not given its approval to the open offer.

VCPL along with AMG Media Networks and Adani Enterprises Ltd had proposed to acquire an additional 26% or 1.67 crore equity shares at an offer price of ₹294 per share.

Listen : What happened with the Adani and NDTV transaction? | In Focus podcast

If fully subscribed, the open offer will amount to ₹492.81 crore at a price of ₹294 per share.

"The decision to acquire NDTV was arrived at in furtherance of the Adani Group's objective to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision," Adani Enterprises had said in a regulatory filing in October.

On Monday, shares of NDTV closed at ₹382.20 on BSE, down 5%, touching a lower circuit.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.