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NDTV founders ask Sebi if its previous order restrains conversion of warrants issued to VPCL

Last week, VCPL had responded to the stock exchange filing by RRPR and said that it is not a party to the SEBI order dated November 27, 2020 and that it is obligated to comply with contractual obligations.

August 29, 2022 / 11:09 AM IST
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NDTV founders have written a letter to market regulator, the Securities and Exchange Board of India (Sebi), to determine if its previous order dated 27 November 2020 restricts conversion of warrants issued to Vishvapradhan Commercial Private Limited (VCPL) into equity shares of the promoter group vehicle RRPRH.

"NDTV founders Radhika and Prannoy Roy have informed New Delhi Television Limited ('NDTV') that the promoter group vehicle of NDTV, viz. RRPR Holding Private Limited ('RRPRH') has written a letter dated 28 August 2022 to SEBI, asking it to determine whether the SEBI order dated 27 November 2020 restricts conversion of warrants issued to Vishvapradhan Commercial Private Limited ('VCPL') into equity shares of the promoter group vehicle RRPRH," NDTV said in a regulatory filing on August 29.

"On 23 August 2022, VCPL in a notice to RRPRH intimated that it was exercising its right to convert warrants issued to it in 2009 into equity shares which would give VCPL the control of 99.5 percent of RRPRH. SEBI in its order dated 27 November 2020 had restrained the NDTV founders from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of two years, ending on 26 November 2022. VCPL has also been informed by RRPRH of its letter to SEBI," it added.

Adani Group-owned VCPL last week said that RRPR is not a party to the said Sebi order and that it is obligated to comply with contractual obligations.

''The warrant exercise notice has been issued by VCPL under a contract which is binding on RRPR,'' VCPL said in its response. VCPL a wholly owned subsidiary of AMG Media Network Ltd (AMNL), which is owned by Adani Enterprises Ltd.

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This was in response to a regulatory filing by NDTV on August 25 which said Adani Group may not be able to complete its deal to buy RRPR Holdings, the promoter group vehicle of New Delhi Television, without the market regulator’s approval.

Read more | Sebi approval necessary for Adani Group to secure RRPR stake: NDTV

Adani Group's media arm on August 23 announced that it would purchase a 29.18 percent stake in New Delhi Television Ltd (NDTV), and make an open offer to acquire another 26 percent of the shares in the company.

Read More | Adani media arm to purchase 29.18% stake in NDTV, launch open offer

NDTV, which operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit - also has strong online presence. The company recorded a revenue of Rs 421 crore in financial year 2022, with an EBITDA of Rs 123 crore and net profit of Rs 85 crore during the fiscal.
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first published: Aug 29, 2022 09:11 am
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