Adani says SEBI nod not required, NDTV “bound to immediately” allot shares

New Delhi: Adani group’s flagship company Adani Enterprises on Friday through a regulatory filing to the stock exchanges said prior approval from market regulator Securities and Exchange Bureau of India (SEBI) is not required for allotment of NDTV shares to its unit Vishvapradhan Commercial.

This comes after NDTV on Thursday informed the stock exchanges that its promoters are barred from accessing the securities market until November 26, 2022, and thus Adani Group would require the market regulator’s approval to acquire any stake in the news channel company.

“The contentions raised by RRPR (a promoter group company of NDTV) in the Letter are baseless, legally untenable and devoid of merit. RRPR is therefore bound to immediately perform its obligation and allot the equity shares as specified in the Warrant Exercise Notice,” Adani company’s exchange filing said.

The warrant exercise notice, the filing said, has been issued by VCPL under a contract which is binding on RRPR. RRPR is therefore obligated to comply with its contractual obligations.

Adani group announced the indirect acquisition of 29.2 per cent in the broadcaster on Tuesday, along with an offer to buy another 26 per cent from the open market.

Vishvapradhan Commercial, a wholly owned subsidiary of AMG Media Networks, the media arm of Adani group has exercised the rights to acquire 99.5 per cent of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV. VCPL has exercised its rights reportedly based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10.

RRPR is a promoter group company of NDTV and holds 29.18 per cent stake in NDTV.

In a statement that came soon after Adani Group’s announcement about the acquisition, NDTV said that the move by an Adani group subsidiary to acquire stake in it was made without any “conversation” or “consent” and that its founders were made aware of the development on the same day itself.

It added NDTV has “never compromised” on the heart of its operations – its journalism and would ” continue to proudly stand by that journalism”.

“Without any discussion with New Delhi Television Limited (NDTV) or its founder-promoters, Radhika and Prannoy Roy, a notice was served upon them by Vishvapradhan Commercial Private Limited (VCPL) stating that it (VCPL) has acquired control of RRPR Holding Private Limited (RRPRH). This entity owns 29.18 per cent of NDTV,” the NDTV statement said, adding that it has been told to transfer within two days all its equity shares to VCPL.