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NDTV share price hits upper circuit of 5% as Adani Group buys stake

NDTV share price hits upper circuit of 5% as Adani Group buys stake

NDTV stock rose 5 per cent to Rs 384.50 in early trade against the previous close of Rs 366.20 on BSE. Market cap of the media company rose to Rs 2,478.92 crore.

NDTV share price today: In a year, the share has zoomed 388 per cent and gained 233 per cent since the beginning of this year. NDTV share price today: In a year, the share has zoomed 388 per cent and gained 233 per cent since the beginning of this year.

Share price of NDTV hit upper circuit of 5 per cent in early trade today after Adani Group's media entity said that it would indirectly buy a 29.18 per cent stake in the media company New Delhi Television (NDTV) and also made an open offer to acquire another 26 per cent of the shares in the media company.

NDTV stock rose 5 per cent to Rs 384.50 in early trade against the previous close of Rs 366.20 on BSE. The stock opened with a gain of 3.77 per cent at Rs 380 today.

Also read: Adani Group to indirectly buy 29.18% stake in NDTV, launches open offer to acquire another 26%

In a year, the share has zoomed 388 per cent and gained 233 per cent since the beginning of this year. Total 0.73 lakh shares changed hands amounting to turnover of Rs 2.75 crore. Market cap of the media company rose to Rs 2,478.92 crore on BSE.

Meanwhile, shares of Adani Enterprises, the flagship group of Adani Group, were trading 0.55 per cent lower at Rs  3,007 on BSE.

ALSO READ: Prannoy Roy, wife Radhika continue to hold 32.3% per cent in NDTV

Adani Group has purchased the stake in the media company through AMG Media Networks, the conglomerate's media arm. AMG Media Networks' wholly owned subsidiary Vishvapradhan Commercial Private Limited (VCPL) bought the stake by acquiring shares held by RRPR Holding Private Limited, a promoter group company of NDTV.

The acquisition has led to a mandatory open offer pursuant to which, AMG Media Networks has announced an offer to acquire a further 26 per cent stake in the company. The price of the open offer has been fixed at Rs 294, a discount of 19 per cent to the closing price of Rs 366.20 on Tuesday.

In May 2022, AMG Media Networks announced it was buying a 49 per cent stake in Quintillion Business Media Pvt Ltd, a digital business platform company set up by Raghav Bahl.

Stocks in news: Adani Enterprises, NDTV, Tata Motors, TCS and more

Meanwhile, NDTV on Tuesday stated that VCPL has exercised its rights to acquire 99.50 per cent control of RRPR Holding Pvt Ltd "without any discussion with NDTV or its founder-promoters."

RRPR Holding is the promoter-owned company that owns 29.18 per cent of NDTV.

"The notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at Rs 10 per share, and that a total of Rs 1.99 crore has been transferred to RRPRH. The NDTV founders and the company would like to make it clear that this exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only today," NDTV stated in an exchange filing.

RRPR Holding has been told to transfer within two days all its equity shares to VCPL, NDTV added.

Published on: Aug 24, 2022, 9:33 AM IST
Posted by: Aseem Thapliyal, Aug 24, 2022, 9:28 AM IST