Market regulator Sebi has approved Adani Group’s open offer to buy an additional 26 per cent stake in media company New Delhi Television (NDTV) and the offer will start on November 22.
According to an update on Sebi’s website on Monday, the regulator gave its final comments on the proposed Rs 492.81 crore open offer on November 7.
The offer will open tentatively on November 22nd and close on December 5th. The fixed price is Rs 294 per share, according to a recent regulatory filing by NDTV.
A conglomerate run by India’s richest man Gautam Adani in August bought a little-known company that loaned NDTV’s founders more than Rs 400 crore more than a decade ago in exchange for authorizations that allowed the company to acquire a 29.18 percent stake in the news group at any time is.
After that, Vishvapradhan Commercial Pvt Ltd (VCPL) – the company bought out by the Adani Group – announced that it would launch an open offer on October 17 to buy an additional 26 per cent stake from NDTV’s minority shareholders. However, the offer was delayed as Sebi had not given its approval for the open offer.
VCPL along with AMG Media Networks and Adani Enterprises Ltd had proposed to buy an additional 26 percent or 1.67 million shares at the 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 taken in furtherance of the Adani Group’s objective of setting up a credible next-generation media platform with a focus on digital and broadcast programming and that NDTV is a suitable broadcast and digital platform to deliver this vision.” Adani Enterprises said in a regulatory filing in October.
On Monday, shares of NDTV rose 1.99 percent to Rs 365.85 on BSE and Rs 364.50 on NSE.