The Adani Group has acquired 29.18% of the shares of NDTV, an Indian news organization, through a warrant issued by Vishvapradhan Commercial Private Limited (VCPL). VCPL had given a loan to NDTV's promoters, Prannoy and Radhika Roy, in 2009, and as part of the agreement, NDTV had given 99.9% equity warrants to VCPL.
Investigations revealed that VCPL was a shell company owned by Shinano Retail, which in turn was funded by Reliance Industries, a company run by Mukesh Ambani. This means that Ambani's company had indirect control over NDTV since 2009.
The Adani Group acquired VCPL in 2022, and with it, the warrants to acquire 29.18% of NDTV's shares. The founders of NDTV, Prannoy and Radhika Roy, are concerned that Adani may acquire more than 50% of the shares, giving him control over the company.
The Adani Group has offered to buy shares from NDTV's shareholders at a price of Rs 294 per share, but the price has increased to Rs 471 after the offer. The company has also acquired shares of other media companies, including Quint, and is likely to use its media holdings as a negotiating power in its dealings with the government.
The acquisition of NDTV by the Adani Group has sparked concerns about the impact on the media industry and the potential for increased government influence over the media.
Here are the key facts extracted from the text:
1. NDTV was founded in 1988 by Prannoy Roy and Radhika Roy.
2. NDTV was India's first news channel and collaborated with Doordarshan.
3. In 2007, NDTV made a decision to buy back shares from GA Global Investment, which led to financial difficulties.
4. Prannoy and Radhika Roy took a loan of ₹501 crores from Indiabulls Financial Services in July 2008 to buy back shares.
5. The loan was later transferred to ICICI Bank at an annual interest rate of 19%.
6. In 2009, Prannoy and Radhika Roy took a loan of ₹403.85 crores from Vishvapradan Commercial Private Limited (VCPL) to repay the loan.
7. VCPL was owned by Shinano Retail, which was linked to Mukesh Ambani's Reliance Group.
8. As part of the loan agreement, Prannoy and Radhika Roy gave 99.9% equity warrants to VCPL, allowing them to take control of RRPR, a company owned by the Roys.
9. In 2012, the ownership of VCPL was changed, and it was taken over by NextWave Televenture Private Limited, which was linked to Mahendra Nahata, a director of Reliance Jio Infocomm Limited.
10. In 2022, NextWave Televenture Private Limited was taken over by the Adani Group, which acquired VCPL and the warrants to take control of RRPR.
11. Adani Group now owns 29.16% of NDTV shares, while Prannoy and Radhika Roy own around 32%.
12. Under SEBI regulations, Adani Group has the option to offer to buy more than 50% of NDTV shares, which could give them control of the company.
13. Prannoy and Radhika Roy are banned from buying and selling shares until November 25, 2022, due to an insider trading case.
14. Adani Group has offered to buy NDTV shares at ₹294 per share, but the price has increased to ₹471 due to market demand.
15. LTS Investment Fund Limited, a foreign company with ties to Adani Group, owns 9.75% of NDTV shares and may sell them to Adani Group.
16. Adani Group's acquisition of NDTV is seen as a strategic move to gain control of a media company, rather than a financial investment.
17. The Adani Group and other big business groups, such as Reliance, are entering the media industry to gain negotiation power and influence government policies.