The keenly-followed open offer by Adani Group to acquire another 26 per cent in New Delhi Television Ltd (NDTV) – after acquiring 29.18 per cent in the media company – opened on Tuesday even as the offer price remained significantly lower than the market price.
Shares of NDTV closed Tuesday at Rs 383, a premium of nearly 30 per cent over the open offer price of Rs 294 per share. During intra-day trading on Tuesday, NDTV stock touched a low of Rs 363.10 before recouping the day’s losses and end on a marginally positive note.
While market participants remain divided on the possible outcome of the offer in terms of the number of shares that the Adani Group can mop up from the market, there remains the larger question on the future of the listed firm with both Adanis and Roys – Prannoy Roy and wife Radhika Roy – holding a significant stake in the company.
Prannoy and Radhika directly hold 15.94 per cent and 16.32 per cent, respectively in NDTV.
“The NDTV promoter family will have to reach an agreement with the Adani Group on how the company will be managed. It will not be easily possible to fight since Adani is now a significant shareholder,” says Shriram Subramanian, Founder, InGovern Research Services, a proxy advisory firm.
Meanwhile, in terms of the open offer, experts believe it is unlikely that shareholders will tender their shares unless any of the institutional shareholders has entered into any kind of understanding with the acquirer entity i.e. Adani Group.
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