Short overview of the Mode of Acquisition of NDTV stake by Adani

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Short overview of the Mode of Acquisition of NDTV stake by Adani

Adani group has acquired 29.18% stake in NDTV. Let us understand the complex transactions that unfolded in this process:

 

  1. NDTV’s shareholding pattern before Adani’s acquisition was- Radhika Roy: 16.32% Prannoy Roy: 15.94% RRPR : 29.18% Others: 38.56%

 

  1. RRPR had taken interest free loan from Vishva pradhan Commercial Private Limited (VCPL) amounting to Rs. 403.85 during 2009-10, granting it a warrant that gave VCPL right to convert the warrants into equity shares upto 99.99% of total equity shares of Radhika Roy Prannoy Roy (RRPR ) holding private limited

 

  1. Adani bought VCPL through one of its wholly owned subsidiaries AMG Media Network Limited in an all cash deal amounting to Rs. 113.75 Crore.

 

  1. Adani announced that, VCPL has exercised its right to convert warrants into equity shares constituting 99.50% of total equity share of RRPR by issuing a warrant exercise notice.

 

  1. The said actions gave an indirect control of RRPR to Adani Enterprises. It means now Adani enterprises hold 99.50% shares of RRPR through its subsidiaries AMG Media Network Limited and VCPL.

 

  1. As the RRPR had 29.18% shareholding in NDTV. Adani Enterprises now will hold 29.03% indirectly through RRPR.

1 Comment

  1. August 27, 2022
    Vipul Thar

    Good narrated.

    Reply

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