scorecardresearch
NDTV shares tank 5% as Adani Group open offer for additional stake kicks off

NDTV shares tank 5% as Adani Group open offer for additional stake kicks off

NDTV fell 5 per cent to hit a low of Rs 363.10 on BSE. The scrip later recovered to trade at Rs 372.75, still down 2.47 per cent

The offer price for NDTV shares is fixed at Rs 294 per share. This is 21.12 per cent lower than the prevailing market price The offer price for NDTV shares is fixed at Rs 294 per share. This is 21.12 per cent lower than the prevailing market price

Shares of NDTV tanked 5 per cent in Tuesday's trade after the Rs 493-crore open offer for an additional 26 per cent stake by Adani Group companies kicked off. The open offer was earlier scheduled to open on October 17.

Shares of NDTV fell 5 per cent to hit a low of Rs 363.10 on BSE. The scrip later recovered to trade at Rs 372.75, still down 2.47 per cent. The offer price for 1,67,62,530 shares is fixed at Rs 294 per share. This is 21.12 per cent lower than the prevailing market price. As per BSE and NSE, no shares of NDTV were tendered as of 11.40 am.

Sebi gave its final comments on the proposed Rs 492.81 crore-open offer on November 7.

Last quarter, a wholly-owned subsidiary of the Adani Group, AMG Media Networks, acquired 100 per cent stake in Vishvapradhan Commercial Private (VCPL). VCPL held warrants of RRPR Holding Private Limited (RRPR), a promoter company holding 29.18 per cent stake of NDTV.

Vishvapradhan Commercial along with AMG Media Networks and Adani Enterprises are now looking to acquire the additional stake in the media firm via open offer. Prannoy Roy and Radhika Roy 16.32 per cent and 15.94 per cent, respectively, in NDTV as of September 30.

Shares of Adani Enterprises, meanwhile, were trading at Rs 4,047.65, up 1.16 per cent.

Adani group has very clear future plans with and goal to set up a credible next-generation media platform with an emphasis on digital and broadcast segments and found NDTV is a suitable broadcast and digital platform to deliver on the set goal, said Prashanth Tapse, Research Analyst at Mehta Equities.

"From investors point of view the segment is highly risky as losses are being high and, historically, not many have succeeded in this space on a long-term basis," he said. 

Among NDTV's biggest public shareholders is LTS Investment Fund, which owns a 9.75 per cent stake in the company. As per Trendlyne, LTS Investment Fund held 12 domestic stocks worth Rs 17,993.60 crore and owned 1.1-1.7 per cent stake in three Adani Group companies namely Adani Transmission, Adani Enterprises and Adani Total Gas.

Also Read: Paytm, Nykaa, Delhivery, Zomato shares on a bumpy ride! Here's the story so far

Also Read: D-Mart shares down 11% this month, in oversold zone; here’s the new target price

Published on: Nov 22, 2022, 12:21 PM IST
Posted by: Priya Raghuvanshi, Nov 22, 2022, 12:18 PM IST