MUMBAI : After taking control of RRPR Holdings, the promoter company of NDTV, holding 29.18% stake in the broadcaster, Adani Group through its subsidiary Vishvapradhan Commercial Pvt. Ltd (VCPL) may insist on nominating its directors to the board of NDTV. And while the open offer drew no investor interest for a second straight session on Wednesday, Adani Group became NDTV’s largest shareholder, moving a step closer to wresting control of the company, founders of proxy advisory firms said.
Along with acquiring 29.18% stake in NDTV by taking control of RRPR Holdings from Roys, Adani Group acquired 8.26% equity in the company on November 30 through an open offer triggered after buying VCPL in late August.
This takes Adani Group’s stake through its wholly-owned subsidiary VCPL to 37.44%, making it NDTV’s largest shareholder, followed by Radhika and Prannoy Roy, who hold a combined 32.26%.
The open offer, which opened on November 22 and will continue till December 5, did not attract new subscriptions from investors on November 29-30, data from the Bombay Stock Exchange showed.
An Adani Group spokesperson did not respond to a request for comment.
“I would say Adani Group’s stake increases their chances of nominating directors to the NDTV board,” said JN Gupta, former Sebi executive and director of proxy advisory firm SES. “They also don’t need a majority stake to control the company as long as public shareholders support their decisions, whether it’s the appointment of directors or auditors or on compensation issues,” he said when asked if investors would tender their shares , given the significant discount of ₹294 bid price versus Wednesday’s price of ₹446 per share.
Shares of NDTV opened in the upper range on Wednesday ₹446.30 and remained locked in the session at that price. The offer price of ₹294 is a 34% discount from the market price, which touched the upper 5% chain for the fourth consecutive session.
“There is no requirement that the offer price be in sync with the market price, which changes based on investor perception,” Gupta said. change. If they believe that a change in management will promote the company’s growth, the market price may trade above the offer price. In case the market price is below, investors can subscribe to the open offer.
An open offer is triggered when an entity acquires more than 25% in a company. The price is the higher of the 52-week volume-weighted average share price or the highest price paid by the acquirer in the 26 weeks prior to the announcement of the offer.
“Adani Group has acquired control of the promoter company and the open offer has so far attracted decent interest,” said Sriram Subramanian, MD, proxy advisory firm InGovern Research Services. the offer.”
A foreign institution, LTS Investment Fund, held 9.75% of NDTV’s equity as of the quarter ended September.
While it is not certain that LTS participated in Adani Group’s open offer for NDTV, the institution held 1.69% in Adani Enterprises, 1.1% in Adani Total Gas and 1.63% in Adani Transmission as of the quarter ended September 30.
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