Adani Group’s open offer to acquire additional 26 per cent stake in media firm New Delhi Television (NDTV) from the market will begin on Tuesday.
A notice by JM Financial, the firm managing the offer on behalf of Adani group firms, said the offer, for which a price band of Rs 294 per share has been fixed, will open on November 22 and close on December 5.
Markets regulator SEBI on November 7 approved the proposed open offer of Rs 492.81 crore.
The group, run by India’s richest man Gautam Adani, acquired a little-known company in August that lent Rs 400 crore to NDTV’s founders more than a decade ago in exchange for warrants that The company was allowed to acquire a stake of 29.18 per cent. newsgroups at any time.
After that, VCPL – the firm that was bought by the Adani group – announced that it would make an open offer on October 17 to buy an additional 26 per cent stake from minority shareholders of NDTV. However, the offer got delayed as SEBI did not give its approval to the open offer.
VCPL along with AMG Media Networks and Adani Enterprises Ltd had offered to acquire an additional 26 per cent or 1.67 crore equity shares at an offer price of Rs 294 per share.
If fully subscribed, the open offer will amount to Rs 492.81 crore at a price of Rs 294 per share.
“The decision to acquire NDTV was made in furtherance of the Adani Group’s objective of establishing a credible next-generation media platform with emphasis on the digital and broadcast segments, and NDTV is an appropriate candidate to fulfill this vision.” broadcast and digital platform, Adani Enterprises said in a regulatory filing in October.
On Monday, shares of NDTV touched the lower circuit to close at Rs 382.20 on the BSE, down 5 per cent.