NDTV says Adani requires regulatory nod to buy its top shareholder

Mumbai/Bengaluru: New Delhi Television Ltd (NDTV) on Thursday said Adani Group needs regulatory approval to buy its biggest shareholder, as its founders - who own the target firm - are barred from trading in securities markets.

Indian billionaire Gautam Adani's conglomerate on Tuesday said it was seeking a controlling stake in the news channel. NDTV said the action "was executed without any input from, conversation with, or consent of the NDTV founders".

NDTV founders Radhika and Prannoy Roy took a 4 billion rupee ($50 million) loan from little-known firm VCPL over 10 years ago, and in exchange issued warrants allowing VCPL to buy 29.18% of the news group.

The Adani Group said on Tuesday it had acquired VCPL and is exercising those rights.

NDTV on Thursday cited a November 2020 ruling from the Securities and Exchange Board of India (SEBI) barring the Roys from accessing the securities market until November 26, 2022.

NDTV shares gain 5%; hit upper circuit

Meanwhile, shares of NDTV Ltd continued to climb for the second consecutive day on Thursday and touched the upper circuit limit of Rs 407.60 on the National Stock Exchange (NSE) amid the Adani group making an offer to take over the media firm.

On NSE as well as BSE (Bombay Stock Exchange), the scrip jumped 5 per cent in opening trade and touched the respective upper circuit limits.

The company's shares rose 5 per cent to Rs 407.60 apiece on NSE, also its 52-week high, after closing at Rs 388.20 on Wednesday.

Similarly, NDTV Ltd gained 5 per cent to Rs 403.70 per share on BSE. It is also the 52-week high for the company on the bourse.

In the morning trade, the 30-share benchmark Sensex surged more than 351 points to 59,436.78 points while the broader Nifty rose 101 points to 17,706 points.

On Wednesday also, shares of NDTV Ltd had touched the upper circuit limits, the highest permissible trading limit for the day.

In a stunning move on Tuesday, the Adani group announced launching an open offer to acquire an additional 26 per cent stake in NDTV Ltd after an indirect acquisition of 29.18 per cent shareholding in the company.

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