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:
- NDTV’s shareholding pattern before Adani’s acquisition was- Radhika Roy: 16.32% Prannoy Roy: 15.94% RRPR : 29.18% Others: 38.56%
- 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
- 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.
- 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.
- 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.
- As the RRPR had 29.18% shareholding in NDTV. Adani Enterprises now will hold 29.03% indirectly through RRPR.