Mumbai (Maharashtra) [India], August 24 (ANI): Share price of New Delhi Television Limited (NDTV) surged 5 per cent to hit the upper circuit limit on Wednesday a day after Adani Group announced that it would acquire a majority stake in the news channel company.
On the BSE the share price of NDTV opened at Rs 380 and hit the upper circuit limit of Rs 384.50 soon after the opening of the trade on Wednesday against its previous day's close at Rs 366.20.
This is the highest level of NDTV shares in the past one year. The 52-week low of NDTV share is Rs 71.15.
NDTV shares have surged after Adani Group announced that it has acquired 29.18 per cent stake in the news channel company by converting debt into equity.
Adani Group has also announced that it would acquire another 26 per cent stake in NDTV through an open offer.
AMG Media Networks Limited (AMNL), a wholly owned subsidiary of Adani Enterprises Limited (AEL), has acquired 29.18 per cent stake in NDTV.
Vishvapradhan Commercial Private Limited (VCPL), wholly owned subsidiary of AMG Media Networks Limited (AMNL), has exercised the rights to acquire 99.5 per cent of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV.
AMNL's wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into 99.99 per cent stake in RRPR. VCPL has exercised warrants to acquire 99.5 per cent stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR, Adani Group said in a statement on Tuesday.
RRPR is a promoter group company of NDTV and holds 29.18 per cent stake in NDTV.
VCPL, along with AMNL & AEL (persons acting in concert), will launch an open offer to acquire up to 26 per cent stake in NDTV, in compliance with the requirements of the SEBI's (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Adani Group said.
NDTV recorded a Revenue of Rs 421 crore with an EBITDA of Rs 123 crore and net profit of Rs 85 crore in the financial year 2021-22 with negligible debt.
"This acquisition is a significant milestone in the journey of AMNL's goal to pave the path of new age media across platforms," Sanjay Pugalia, CEO, AMG Media Networks Limited, said in a statement.
"AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform to deliver on our vision. We look forward to strengthening NDTV's leadership in news delivery," Pugalia said. (ANI)