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NDTV vs Adani Group: VPCL knocks on SEBI's door, seeks clarity on RRPRH's stand

NDTV vs Adani Group: VPCL knocks on SEBI's door, seeks clarity on RRPRH's stand

The Securities and Exchange Board of India, in its order dated November 27, 2020, had restrained NDTV founders Prannoy and Radhika Roy from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of two years till November 26, 2022.

Adani Group had acquired VCPL through AMG Media Networks. Adani Group had acquired VCPL through AMG Media Networks.

Adani Group on Monday sought market regulator SEBI's clarification on its 2020 order, in line with NDTV founders' move.

The Securities and Exchange Board of India, in its order dated November 27, 2020, had restrained NDTV founders Prannoy and Radhika Roy from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of two years till November 26, 2022.

"RRPRH has addressed a letter dated August 28, 2022 to SEBI to determine if the warrants can be converted into equity shares ahead of the November 26, 2022 deadline laid out in the SEBI order, and that any further action to be taken, can only be based on the SEBI response. In this regard, we would like to inform you that VCPL has also written a letter dated August 29, 2022 to SEBI, requesting SEBI to help provide clarity, certainty and avoid confusion in the minds of public shareholders of NDTV that has arisen due to the stand taken by RRPR and issue appropriate response to RRPR clarifying that the SEBI Order does not restrain RRPR from allotting shares to VCPL," Adani Enterprises stated in an exchange filing.

VCPL had, in a notice to RRPRH on August 23, intimated that it was exercising its rights to convert warrants issued to it in 2009 into equity shares, which would give it control of 99.5 per cent of RRPRH.

The ongoing tussle between Adani Group and NDTV came out in public after VCPL, a subsidiary of Adani's AMG Media Networks, said that it has acquired 29.18 per cent stake in the media company by converting its warrants into equity shares to acquire RRPR Holdings.

Adani also offered to acquire another 26 per cent in NDTV. Adani Group had acquired VCPL at a value of around Rs 113.75 crore through AMG Media Networks.

Soon after the announcement, the New Delhi-based media company said that the conversion can't go through as an earlier order by SEBI had barred such activity.

Published on: Aug 29, 2022, 10:21 PM IST
Posted by: prashun talukdar, Aug 29, 2022, 10:18 PM IST