Chennai 10th, September : In an important setback for two promoters of satellite channel company– New Delhi Television Ltd (NDTV) The Income Tax Department has said it does not require permission to authorize the issuance of shares by the investment vehicle that was the first company’s.The Adani group has begun steps to acquire NDTV by releasing an open bid for a 26 percent stake in the former, and by using its rights to convert shares warrants that were issued by RRPR Holding Private Ltd.
On 23.8.2022, Adani group’s AMG Media Networks announced its subsidiary Vishvapradhan Commercial Private Ltd’s (VCPL) decision to take advantage of its rights to acquire 99.5 percent of the equity shares of RRPR which is the investment corporation of NDTV promoters Prannoy Roy and Radhika Roy.Prannoy Roy and Radhika Roy.
The VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into 99.99 percent stake in the latter.
The VCPL has exercised its option in part which resulted in the acquisition of control of RRPR Holding — 1,990,000 equity shares or 99.50 percent.
RRPR Holding holds 29.18 per percent stake in NDTV which has three TV networks in the United States.
This led to the issue of an open offer to purchase shares of NDTV from the public in accordance with SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
For their part, the Roys had informed NDTV that Income Tax Department and SEBI’s approval or clarification is required to convert of warrants issued by RRPL Holding into equity in favor of Adani group’s VCPL.
Rejecting the claim of the Roys, VCPL had written to the Income Tax Department on 7.9.2022.
In the meantime, in a regulatory filing the company’s regulatory filing said VCPL has informed RRPR Holding and NDTV that it sent a letter to SEBI on September 8 2022 regarding the communication with SEBI regarding its communication with the Income Tax Authority and the SEBI’s response.
“The note from the Income Tax Authority dated September 7, 2022, states that the ban under the orders mentioned above under section 281B for the duration of their implementation is M/s.RRPR Holding Private Limited for selling or transferring of its shareholding in M/s.New Delhi Television Limited and from causing or causing any charge thereon only, regardless of the shareholding patterns of M/s.RRPR Holding Private Limited and who has control over it but not over the distribution of shares of M/s.RRPR Holding Private Limited,” NDTV said in a regulatory filing.
In other words in other words, the Income Tax Department has said there are no limitations regarding RRPR Holding acting on VCPL’s decision to convert its warrants for shares into 99.50 percent equity.
When they heard of Adani group’s interest in taking over NDTV users of social media said that it is now NDTV will be renamed NDATV or New Delhi Adani Television.
Furthermore, Adani group promoter Gautam Adani is believed to be close to BJP that is the leader of the National Democratic Alliance and whose acronym is NDA.
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