NDTV locked at upper circuit as founders transfer shares
MUMBAI : NDTV shares were locked at the 5% upper circuit for the third straight session after the promoter vehicle RRPR transferred 99.5% of its 29.18% holding in the media company to VCPL , a wholly owned subsidiary of Adani Group.
No investor submitted its shares for the open offer of VCPL and its persons acting in concert (PACs) on Tuesday , as of writing. The share gapped up 3.4%, trading up for most part of the day, before remaining locked at the 5% upper circuit of ₹426.4 at closing.
As of 4 pm Tuesday, cumulative shares offered by investors stood at 53.27 lakh , or 31.78% of the 1.67 crore shares under the offer to buy by VCPL along with PACs.
What has surprised some analysts on the Street is investors having offered their shares despite the open offer price of ₹294 apiece being at a 27.6% discount to the closing price of ₹406.1 on Monday . The size of the offer is ₹492.81 crore.
Along with RRPR’s transfer and shares submitted under the open offer so far , VCPL’s shareholding in NDTV aggregates 37.29% , exceeding the combined shareholding of Radhika and Prannoy Roy of 32.26% as of September quarter end.
Interestingly , the name of Chennai based investor Dolly Khanna who held 1% of NDTV’s equity as of the June quarter end , doesn’t figure in the September quarter end shareholding.
A total of 182 bodies corporate who held 9.61% of the company’s equity at June end raised their holding to 9.86% with 32 more corporates taking their number to 214.
The number of retail shareholders rose to 55446 holding 9.29% as on the quarter ended September from 29691 holding 8.52% of NDTV’s equity as of June end. LTS Investment Fund is an institutional shareholder having 9.75% stake as of September end.
The open offer by Adani Group’s wholly owned subsidiary VCPL to acquire an additional 26% in NDTV runs from November 22-December 5.
Delivery as a percentage of traded quantity stood at 100% on BSE with 100,611 shares changing hands, showing high demand for the stock.
The shares are being acquired through the open offer by VCPL, a wholly owned subsidiary of AMG Media Networks , in turn a wholly owned subsidiary of Adani group . AMG and Adani Enterprises are persons acting in concert with the acquirer.
Adani acquired VCPL, which had lent over ₹400 crore to NDTV’s founders over a decade ago , by which it indirectly acquired 29.18% in the media group , triggering an open offer .
JM Financial is the book runner for the offer.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.