Adani Group’s media arm on August 23 announced that it would purchase a 29.18 percent stake in New Delhi Television Ltd (NDTV).
AMNL held subsidiary VCPL (Vishvapradhan Commercial Private Limited) holds warrants of RRPR Holding Private Limited (RRPR), permitting it to convert them into a 99.99% stake in RRPR. VCPL has also exerted warrants to acquire a 99.5% stake in RRPR. However, the purchase will result in VCPL having control of RRPR. RRPR is a promoter group company of NDTV (NDTV, BSE: 532529) and bears a 29.18% stake in the media company.
VCPL, along with AMNL (AMG Media Networks Limited) and AEL (Adani Enterprises Limited), will pitch an open bid to acquire up to 26% stake in NDTV, in adherence with the requirements of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The New Delhi Television Ltd manages three national news channels, NDTV 24×7, NDTV India and NDTV Profit. Furthermore, NDTV recorded a Revenue of INR 421 crores with an EBITDA of INR 123 crores and a Net Profit of INR 85 crores in FY22 with nominal debt.
“The acquisition is a significant milestone in the journey of AMNL’s goal because it wishes to pave the path of new age media across platforms,” stated Sanjay Pugalia, CEO of 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 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 its leadership in news delivery,” Pugalia added.
However, the other side of the coin tells a different story. The New Delhi Television Limited has issued a statement that denies any such transaction. It claimed that the VCPL did not discuss its intent with any founder of the NDTV to exercise its right to acquire 99.5% of RRPR Holding Private Limited. The statement said, “The notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and
Prannoy Roy in 2009-10.”
NDTV has refused to come to terms with the deal as it was ‘executed without any input from, conversation with, or consent of the NDTV founders.’ The media house also refers to it as a ‘baseless rumor.’ It said, “The Company and its Founders are well aware of the need and obligation to inform exchanges and other regulators if there is to be any change to their holding; if that were the case, they would share any updates first with those authorities.”