New Delhi: The open bid by the Adani Group to purchase an additional 26% of New Delhi Television (NDTV) will begin on Tuesday.
According to a notice from JM Financial, the company administering the offer on behalf of Adani Group companies, the offer, for which a price band of Rs 294 per share has been defined, will begin on November 22 and end on December 5. On November 7, the market watchdog Sebi approved the proposed Rs 492.81 crore open offer.
The conglomerate, led by India’s richest man Gautam Adani, bought a little-known firm in August in return for warrants that permitted it to purchase a 29.18% share in the newsgroup at any moment. This company had financed the owners of NDTV more than Rs 400 crore nearly than ten years ago.
Following that, VCPL, the company that the Adani group purchased, declared that it will begin an open offer on October 17 to acquire a further 26% interest from NDTV’s minority shareholders. Since Sebi had not yet approved the open offer, the offer was postponed.
At an offer price of Rs 294 per share, VCPL, AMG Media Networks, and Adani Enterprises Ltd. offered to purchase an additional 26%, or 1.67 crore equity shares. The open offer will cost Rs 492.81 crore at a price of Rs 294 per share if it is fully subscribed.
“The decision to acquire NDTV was arrived at in furtherance of the Adani Group’s objective to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision,” Adani Enterprises had said in a regulatory filing in October.
On Monday, NDTV stock touched a lower circuit and closed at Rs 382.20 on the BSE, a 5% decline.