Adani Group may not be able to complete its deal to buy RRPR Holdings, the promoter group vehicle of New Delhi Television, without the market regulator’s approval, stated a regulatory filing by the New Delhi Television Limited (NDTV) on August 25.
Shares of NDTV were locked upper circuit for third straight session today, testing a 14-year high.
The media company's statement came after Adani Group, which recently established a media arm, announced that it would pick up 29.18 percent stake in company and make an open offer to acquire another 26 percent.
"In view of directions in force vide order dated November 27, 2020, of the Securities and Exchange Board of India (SEBI), restraining the Founder-Promoters Dr. Prannoy Roy and Mrs. Radhika Roy from accessing the securities market, and further prohibiting buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of 2 years, which expires on November 26, 2022, unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed Acquirer to secure 99.5% interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18% of the issued share capital of the Target Company held by the Promoter Group vehicle," NDTV said.
“Details in compliance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, will be provided to VCPL,” it added.
NDTV on August 23 had clarified that there was no consent from its founders for the exercise of rights by VCPL to acquire 99.50 percent control of RRPRH the promoter company that holds 29.18 percent stake in the media group. The rights were "executed without any input from, conversation with, or consent of the NDTV founders", the company had informed the stock exchanges.
Market experts are currently tight-lipped on the stock’s future moves for two reasons. One, very few analysts have a coverage on NDTV and, two, unpredictable nature of Adani Group stocks make it difficult for them to comment.