On the 25th of August, Thursday, the Adani Group received a letter from New Delhi Television (NDTV) Ltd., to halt the 29.18% stake of NDTV.  

According to the sources, the halt of the takeover was in the view of the Security and Exchange of Board of India (SEBI) prohibition order for any transaction for RRPR Holding Private Limited.  It is to be noted, the AMG Media, a subsidiary of the Gautam Adani led Adani Group, was acquiring the shares indirectly fom the RRPR company, which owns 99.5 % stakes of NDTV.  However, due to an ongoing investigation of inside trading and illicit money gains from the company shares on RRPR owners Mr. Prannoy Roy and Ms. Radhika Roy, any kind of transactions and sharing of shares are prohibited under the SEBI Act.  It is to be noted,  Mr. Prannoy Roy and Ms. Radhika Roy were ordered by SEBI to disgorge illicit gains totalling more than Rs. 169.7 million in 2020, after being found guilty of insider trading.  They also received a two year suspension from the securities market.

Now, due to the situation and prohibition, the Adani Group’s AMG Media is unable to acquire a 29.18% stake of NDTV.   On the 24th of August, Wednesday, the Adani Group claimed to have indirectly purchased a 29.18% stake in the broadcasting business by converting warrants held in RRPR Holding in lieu of a 4 billion rupee loan.  In addition, the Adani Group also launched an open offer to purchase up to 26% of NDTV stakes. 

It is to be noted, as of the 30th of June, there were 61.45% of promoter shares in NDTV, of which RRPR Holding Pvt., Ltd., held 29.18% and Prannoy Roy and Radhika Roy individually owned about 32% stakes.  However, since Ms. Radhika and Mr. Prannoy Roy are no longer permitted to conduct any securities transactions, this prohibition also applies to all of the firms that these two promoters possess.  Therefore, the takeover by Adani Group comes under the SEBI prohibition, which makes this deal null and void as of now.

Mango News Link

Telegram: https://t.me/mangonewsofficial

Google Play Store: https://bit.ly/2R4cbgN

Apple / iOS Store: https://apple.co/2xEYFJ

Categorized in:

National

Tagged in:

, , , , , , , , , , , , ,