NDTV shares have jumped more than 16 percent since Adani Group launched its takeover bid for the media conglomerate, a rally that also comes at a time when bullish sentiment dominates the broader market.
Diversified group Adani launched a hostile takeover bid for NDTV, indirectly buying a 29.18 percent stake in the broadcaster and followed up with an open offer to buy an additional 26 percent stake.
On the BSE, NDTV shares gained 16.19% in the period from August 23, the day the Adani group announced the takeover offer, to December 1. level within a day – in many cases.
On Friday morning, the stock described a volatile trend and was trading 2.23% higher at Rs 435.
The stock also rose 44.72 percent from Adani Group’s open price of Rs 294 apiece.
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The open offer started on November 22nd and will end on December 5th.
So far, 53,27,826 shares have been offered under the open offer, according to BSE data until 10:30 a.m. on Friday.
The stock has recently been hitting the upper limits of the range. On November 25, it touched the upper limit of the chain at Rs 386.80 and again on November 28 it touched the maximum trading level for the day at Rs 406.10.
Similar trends are observed during the next three trading sessions of the BSE. On December 1, the stock closed at Rs 425.50 on the BSE.
Analysis showed that since the start of the open offer on November 22, the price has risen by 13 percent.
Shares of NDTV have been witnessing an upward trend since early July when there were already rumblings that the Adani group might be looking to take over the media group.
From July 1 to December 1, the stock is up more than 153 percent. The stock touched a near 52-week high of Rs 540.85 on September 5 this year.
After seeing significant volatility in recent months, mainly due to uncertain global signals, the broader market is now bullish.
The 30-share BSE Sensex was at a record high till Thursday. The BSE benchmark on Thursday settled at 63,284.19, a new record closing high.
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The Sensex settled above the 63,000 level for the first time on Wednesday. From August 23 to December 1, the benchmark rose by 4,252.89 points or 7.20 percent.
NDTV founders Prannoy Roy and his wife Radhika Roy have resigned as directors of promoter group RRPR Holding Private Limited as the Adani Group nears its takeover of the TV channel.
RRPR, which was acquired by the Adani Group, held a 29.18% stake in the news channel.
The Roys, however, still hold a 32.26 percent stake in NDTV as promoters and have not resigned from the news channel’s board.
A successful open offer would give the Adani Group a controlling stake of just over 55 percent.