The Adani Group has cemented its position in several sectors, ranging from airports, renewable energy, mining and data centers — to name a few. Adani has broadened its horizon to the media and entertainment sector and chose the news institution, New Delhi Television Limited (“NDTV”) to achieve its vision.
In 1984, the journalist Radhika Roy and her economist husband Prannoy Roy founded New Delhi Television. The company began operation as a production house of news segments for the public broadcaster Doordarshan and international satellite news channels. It comes with no doubt that NDTV has an extensive digital and offline customer reach. Accordingly, the mammoth customer base of NDTV clubbed with the enormous resources at the disposal of the Adani Group is a set to ensure that the deal has the potential to revolutionize the media & entertainment industry.
The acquisition of NDTV by the Adani Group is one that everyone watched with bated breath. The dramatic story of achievement had everything - a mysterious lender, a loan with no interest, a change of control, a hostile takeover, SEBI orders, an open offer below market price and a surprising sale of shares, which resulted in the Adani Group becoming the majority shareholder of NDTV.
The chronicle began with the Adani Group acquiring a stake in Vishvapradhan Commercial Private Limited (“VCPL”), which consequently held share warrants issued by the promoter entity of NDTV, RRPR Holdings Private Limited (“RRPR”), pursuant to a loan extended by VCPL to RRPR. The conversion of the share warrants led to an indirect holding of Adani Group in NDTV, triggering an open offer to the public. The founders of NDTV first contested this but eventually transferred a portion of their shareholding in NDTV to RRPR.
The cumulative effect of each of these steps led to the shareholding held by the Adani Group in NDTV aggregating to a whopping 64.71% (Sixty Four point Seven One percent) stake in the company.
Deeya A Snehal
CM9
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