No takers for Adani’s open offer for additional shares in NDTV on day one

The Adani group’s open offer for additional shares in New Delhi Television (NDTV) saw no takers on Tuesday — the first day of its launch. The open offer for 16.7 million shares at Rs 294 apiece will close on December 5. The nearly Rs 493-crore open offer is for an additional 26 per cent stake in the company.

The stock exchange data showed that no shares were tendered so far in the open offer, even as the NDTV stock price fell for the third day in a row. On Tuesday, shares of NDTV closed at Rs 376.25 apiece on the BSE, down 1.56 per cent over the previous day’s close. Since Thursday, NDTV’s stock price has fallen 11.17 per cent on the BSE. But the trading price, based on Tuesday’s close, still remains higher than the open offer price by nearly 28 per cent, the data showed. “Given the response on day one, it is unlikely that the open offer will sail through at this price. So far, the Adani group has not revised the open offer price, nor have the NDTV promoters presented a counter offer,” said Shriram Subramanian, managing director, InGovern.

“This means that the status quo will remain for now, with the NDTV promoters Prannoy and Radhika Roy directly holding 32.26 per cent, and the Adani group holding 29.18 per cent. The two will have to learn to live together to ensure the company is managed smoothly,” he said.

Apart from the Roys and the Adani group, foreign portfolio investors hold 14.72 per cent in the company, and individuals and other entities hold a 23.84 per cent stake in the firm.

The open offer was triggered following plans unveiled by the Adani group in August to pick up 29.18 per cent in the news broadcaster by acquiring Vishvapradhan Commercial (VCPL), which holds a 99.99 per cent stake in NDTV promoter firm RRPR Holding.

On Friday, NDTV’s independent directors had asked shareholders to carefully evaluate the open offer, since the trading price was higher than the open offer price.

“The open offer price is in accordance with the Sebi SAST (Substantial Acquisition of Shares and Takeovers) Regulations. On that basis, it appears to be fair and reasonable,” they said. “However, the committee of independent directors would like to draw attention [to the fact that] that the shares of the target company (NDTV) have been consistently trading on the stock exchanges at prices which are significantly higher than the offer price,” they said.

Last month, the Adani group had written to the Securities and Exchange Board of India (Sebi), re-affirming its commitment to complete the open offer process for additional shares in NDTV. After delaying it, the market regulator had finally given its approval to the open offer earlier this month.