Adani Enterprises Says Sebi Approval Not Needed For Buying NDTV Shares

Adani Enterprises in a stock exchange filing said the contentions raised by RRPR Holdings in a letter to VCPL are baseless, legally untenable, and devoid of merit

The Adani group was reacting to a stock exchange filing made by NDTV on Thursday that said the capital market regulator in November 2020 had banned its promoters for two years from buying or selling shares. ( Image Source :AFP )

Gautam Adani-led Adani Enterprises on Friday in a regulatory filing to the stock exchange said that Vishvapradhan Commercial Private Limited (VCPL) does not agree with RRPR Holdings, promoter group vehicle of New Delhi Television (NDTV), that prior written approval from the Sebi is required for allotment of shares to VCPL on exercise of warrants. VCPL also mentioned that RRPR is obligated to comply with contractual obligations.

“Performance of obligations by RRPR pursuant to the warrant exercise notice will not result in violation of the Sebi order...VCPL therefore does not agree with RRPR that prior written approval from Sebi is required for allotment of shares to VCPL on exercise of warrants,'' it added.

According to an official release by Adani Enterprises, the company on August 23 said the amount of Rs 1,99,00,000, being the amount payable for the 19,90,000 equity shares of RRPR pursuant to exercise of warrants, has been paid by VCPL and received by RRPR. Any subsequent attempt by RRPR to return the money received or the original warrant certificate shall have no legal effect on the exercise of warrants by VCPL, which has been completed.

Adani Enterprises said the contentions raised by RRPR Holdings in a letter to VCPL are baseless, legally untenable and devoid of merit. “RRPR is therefore bound to immediately perform its obligation and allot the equity shares as specified in the Warrant Exercise Notice,” Adani said.

The Adani group was reacting to a stock exchange filing made by NDTV on Thursday that said the capital market regulator in November 2020 had banned its promoters for two years from buying or selling shares.

Adani Enterprises said VCPL expressed surprise at the stand taken by NDTV in its letter from which it appears that NDTV has adopted the stand taken by RRPR (a promoter shareholder of NDTV). VCPL also informed NDTV that it has separately responded to RRPR on the said allegations.

VCPL, the proposed acquirer of NDTV, and AMG Media Networks and Adani Enterprises, had made an open offer on Tuesday for NDTV under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

On Thursday, Adani Group’s media subsidiary AMG Media Network Ltd, said that is would buy a 29.18 per cent stake in NDTV. The group’s media arm would also make an open offer to acquire another 26 per cent of the shares in the media house.