Prannoy Roy and Radhika Roy quit NDTV’s promotion firm RRPR | News Bharat

Prannoy Roy and his wife Radhika Roy have resigned from the board of RRPR Holding Private Limited, the holding company of the promoters of NDTV, through which they owned more than a quarter of the shares of New Delhi Television Limited. The move came after 99.5% equity of RRPR Holding was transferred to Vishvapradhan Commercial Vishvapradhan Commercial private limited (VCPL), owned by the Adani group.

This was informed in a regulatory filing made to the BSE and as per the filing dated November 29, the Roys have resigned from the board of RRPR with effect from November 29. Along with the departure of Prannoy Roy and Radhika Roy, three new directors were appointed to the company’s board. They are Adani Group CEO Sudipta Bhattacharya, AMG Media Network CEO and AMG Media Network Editor-in-Chief, and Senthil Sinniah Chengalvarayan, director of Adani Group, owned by Vishvapradhan Commercial Pvt. Ltd

In August this year, the Adani Group announced that it had indirectly acquired a 29.18% stake in NDTV. The transaction involved Adani Group-owned Vishvapradhan Commercial Pvt Ltd converting warrants of RRPR Holding Private Limited (RRPR) into equity. VCPL decided to exercise the warrants giving it over 99.5% stake in RRPR. As RRPR holds 29.18% stake in NDTV, it meant that VCPL acquired this stake in the media group.

The root of this transaction goes back to 2008 when the Roys borrowed Rs 540 crore from Indiabulls to fund an open offer they made to buy NDTV shares from the market. They took the loan by pledging their shares in NDTV as collateral. They then borrowed from ICICI Bank to repay the loan to Indiabulls, this time also pledging their NDTV shares held at RRPR.

Again, after that, they took an unsecured loan from Vishvapradhan Commercial private limited (VCPL) to pay the loan to ICICI, in exchange for guarantees for their shares in NDTV. The money that VCPL gave to RRPR came from a company wholly owned by Mukesh Ambani’s Reliance Group. VCPL was later acquired by Adani Group company AMG Media Network Ltd (AMNL).

On November 28, NDTV informed the BSE that its promoter group company RRPR had transferred 99.5% of its equity to VCPL after exercising the warrants. As Adani Group now owns 29.18% stake in NDTV, it has also made an open offer to buy 26% shares of NDTV from shareholders as required by the rules.

The group has offered to buy around 16 million shares of NDTV at an open offer price of Rs 294, much lower than the current market price of around Rs 425.

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