Adani group rejects NDTVs assertion of sebi nod needed for share acquisition

Adani group on Friday rejected NDTVs assertion that Sebis approval is necessary to acquire interests in RRPR saying the promoter entity is not a part of the regulators order that restrained Prannoy and Radhika Roy from accessing the securities marketTerming the contentions raised by RRPR as baseless legally untenable and devoid of merit VCPL said the holding firm is bound to immediately perform its obligation and allot the equity shares as specified in the Warrant Exercise NoticeIn a regulatory update Adani Eneterprises Ltd said VCPL has received a reply on behalf of RRPR to the Warrant Exercise Notice dated August 23 2022RRPR is not a party to the SEBI Order dated 27th November 2020 Consequently the restraints as pointed out by RRPR in paragraphs 111b and 112 of the SEBI Order do not apply to RRPR Adani Enterprises said in the regulatory updateThe Warrant Exercise Notice was issued by its subsidiary Vishvapradhan Commercial Private Ltd VCPL under a contract which is binding on RRPR it addedRRPR is therefore obligated to comply with its contractual obligations Adani Enterprises saidThe group also said the performance of obligations by RRPR pursuant to the Warrant Exercise Notice will not result in violation of the Sebi order as there is no direct or indirect dealing in any securities of Prannoy Roy or Radhika Roy pursuant to the exercise of the warrants by VCPL and allotment of shares by RRPRVCPL therefore does not agree with RRPR that prior written approval from SEBI is required for allotment of shares to VCPL on the exercise of warrants it addedOn Thursday NDTV had said the approval from market regulator Sebi is necessary for VCPL to acquire interests in NDTVs promoter entity RRPR Ltd against an unpaid loanThe Securities and Exchange Board of India Sebi on November 27 2020 restrained the founderpromoters Prannoy and Radhika Roy from accessing the securities market and further prohibiting buying selling or otherwise dealing in securities directly or indirectly or being associated with the securities market in any manner whatsoever for a period of 2 yearsThis ban expires on November 26 2022 said NDTV in a disclosure to exchangesAlso readAdani needs SEBI nod to buy stake as NDTV promoters unless pending appeal proceedings were to successfully conclude prior Sebi approval is necessary for the proposed Acquirer to secure 995 per cent interests in the Promoter Group vehicle since this would consequently lead to the acquisition of voting rights in respect of 2918 per cent of the issued share capital of the Target Company held by the Promoter Group vehicle NDTV said in the regulatory filingOn Tuesday Adani group announced that it has acquired 2918 per cent shareholding in NDTV and will launch an open offer to buy an additional 26 per cent stakeThe key element behind the takeover bid is an unpaid loan that NDTVs promoter entity RRPR Holding Pvt Ltd had availed from Vishvapradhan Commercial Pvt Ltd VCPLThe entity had taken a loan of Rs 40385 crore in 200910 and against this amount warrants were issued by RRPR With the warrants VCPL had the right to convert them into a 999 per cent stake in RRPR in case the loan was not repaidAdani group firm first acquired VCPL from its new owner and exercised the option to convert unpaid debt into a 2918 per cent stake in the news channel companyShares of NDTV hit the upper circuit limit for the third straight day in the opening trade on FridayThe companys shares have been rising after Adani groups hostile takeover bid with the announcement of an open offer on Tuesday to acquire an additional 26 per cent stakeThe scrip opened at Rs 42385 its highest trading permissible limit for the day as well as the fresh 52week high level on BSE This was a 5 per cent increase compared to Thursdays closing level of Rs 40370 apieceAs the session progressed the shares were trading at Rs 42210 apiece a gain of 456 per centOn NSE too the companys shares reached the upper circuit limit of Rs 42795 which was also its 52week high on the bourse after opening at Rs 42190This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever