Vivid News 24: Adani Group will start buying NDTV shares in the open market on Tuesday. They will buy 26% of the market share. In this sense, they recently received authorization from the regulatory authority SEBI.
JM Financial will act as a broker in the entire share transaction process. Adani Group has set a price of Rs 294 per share, they said. The process of buying those shares, which started tomorrow, Tuesday, will continue till December 5.
Earlier on October 17, the Adani Group had announced the start of the open market share purchase process. It was supposed to run till November 1. But the notable thing is that the share price of NDTV was Rs 382.20 in the stock market on Monday. The stock closed at this rate.
Which touched the lower circuit by 5%. That is, the price at which Adani Group is going to buy shares is 23.07% lower than the current closing price. According to data, NDTV’s shares hit a three-month high on September 5. It is a maximum of 540.85 rupees.
Incidentally, there has already been a one-sided controversy over the purchase of shares of NDTV by the Adani Group. But as per the news so far, NDTV founder-promoter Radhika and Prannoy Roy will not go for a legal battle against the Adani group’s purchase of these shares from the open market.
In August this year, Adani group companies announced the indirect purchase of a 29.18% stake in NDTV. It also made an open offer of Rs 493 crore to pick up another 26% stake in the market. With this, more than 55 percent stake in NDTV will go to Adani. They will become the company’s largest shareholder.
But NDTV alleged that the stake was bought without any discussion with the company or its founder-promoters Radhika and Prannoy Roy. Adani Group’s Vishva Pradhan Commercial (VCPL) has sent only a notice to NDTV’s promoter company RRPR Holding to buy the stake.
VCPL said the Adani group owns a 99.5% stake in the company by exercising the ‘warrants’ they had lent to RRPR. This RRPR holds a 29.18% stake in NDTV.
Note that ‘warrant’ is a type of financial transaction contract. When a company makes a loan to another company, there is often an agreement between the two parties that if the borrower fails to repay the money, the lender will have the right to take ownership of shares of equal value.
This is what Adani did to RRPR to take over NDTV. After that, another 26% came in from the open market. That will be effective from Tuesday.