Adani Acquires 29% Stake In NDTV
Gautam Adani, Asia’s richest man, signalled serious intent for a play in India’s media and entertainment industry as his companies acquired a 29% stake in broadcaster NDTV Ltd and launched an open offer to acquire an additional 26% from shareholders, as mandated by law. The acquisition capped months of speculation about a potential acquisition that saw the NDTV stock rally fivefold in nine months (from ₹75.55 on 1 December to ₹376.55 on Tuesday on BSE). Adani Group companies acquired the stake in NDTV indirectly by buying Vishvapradhan Commercial Pvt. Ltd (VCPL), which owned convertible debentures (warrants that provide for the conversion of debt to equity) in RRPR Holding Pvt. Ltd that in turn owned 29.18% of NDTV Ltd. Vishvapradhan acquired the debentures in 2009-10 in return for a loan amounting to ₹404 crore it extended to the promoter holding company. According to India’s securities law, an entity that acquires more than 25% of the equity in a publicly traded company must launc
