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| Will pro-Modi Gautam Adani get ownership of NDTV? |
India's popular TV channel NDT has taken a new turn in a hostile takeover by Asia's richest man, Gautam Adani.
The question-and-answer session on the Adani Group's efforts to buy more shares to acquire ownership rights in NDTV is still ongoing.
According to Indian news agency PTI, the Adani Group has issued a fresh statement rejecting NDTV's claims that the Adani Group will need Sebi's permission to acquire more shares. He says that whatever the regulatory orders of Sebi, the holding company RRPL is not a part of it.
The management of NDTV is trying to save the channel from getting into the hands of Gautam Adani.
NDTV is one of the most popular channels in India, known for its unbiased news coverage. This channel is one of the select news organizations in the country that often criticizes the actions of the federal government.
Gautam Adani is considered close to the ruling Bharatiya Janata Party.
NDTV had cited the possibility of regulatory sanctions as the basis, saying that the Adani Group's action could not go ahead.
Recently, Adani Group bought 30% of the shares of this channel through indirect means. The Adani Group told the Bombay Stock Exchange and the National Stock Exchange that it would also make an open offer to buy an additional 26 percent stake in the channel.
It also suggests that the Adani Group intends to acquire an ownership stake in NDTV. If their open offer is successful, their total stake in NDTV will increase to 55 percent.
Although the management of NDTV expressed surprise about this and said that they did not know anything about it.
According to news agency Reuters, NDTV has said that the Adani Group will not be able to buy any more shares of the channel, citing regulatory restrictions.
According to reports to the Indian Stock Exchange, NDTV founders Pranoy Rai and Radhika Rai have been banned from selling or buying any more of their shares in the stock market from 2020. So they will not be able to transfer these shares to Adani Group. That is, the same shares on the basis of which the Adani Group is trying to acquire the ownership rights of NDTV.
On Tuesday, the Adani Group said it was trying to acquire the necessary controlling stake in NDTV. However, NDTV said that this was a 'completely unexpected' move and no discussions were held with the company. Neither has any such permission been taken from them.
According to the SEBI (Securities and Exchange Board of India) order issued in 2020 by NDTV, Sebi banned Pranoy Roy and Radhika Roy from trading in the Indian stock market till November 26. was given
Sebi took the action after an investigation revealed that the duo had profited improperly in NDTV shares through dubious 'insider trading'.
Preeta Jha, a partner at Pioneer Legal, an Indian law firm, told Reuters: "It looks like NDTV is trying to stop or slow down a process, but it doesn't seem like they are trying to stop it." Adani will be able to stop the group's attempts to take control, even if they slow down the process.'
Basis of opposition and concerns
Gautam Adani is Asia's richest man and is believed to have close ties with Prime Minister Narendra Modi and the ruling BJP.
NDTV is considered to be one of the country's leading broadcasters in both Hindi and English, which is not afraid to criticize the BJP and Narendra Modi.
According to NDTV's objections, the Adani Group did not consider the 'consultation, permission or notice' necessary before making the claims and proposals. While some media organizations, including the opposition, say that the ownership rights of NDTV will be affected by the Adani Group, which will affect the freedom of the press and impartial coverage of news in the country.
In early 2022, Adani Group announced its foray into the media industry with the acquisition of Quintillion Business Media Limited, a business sector news agency.
Meanwhile, the threat to press freedom is emerging as a major concern. Ever since the BJP came to power in India, it has been accused of exerting pressure on the media and trying to mislead the public with the help of various institutions and influential anchor persons.
Adani Group's close ties with Prime Minister Modi have once again become a subject of debate due to its efforts to acquire ownership rights of NDTV.
According to a report by media watchdog website NewsLaundry, "The impact of ownership of a Narendra Modi supporter on the news diversity of a mainstream news channel will be evident."
The Scroll News website emphasized that it was "one of the few channels that continued to criticize the Narendra Modi government."
Trying to force a tech up?
If the Adani Group is indeed trying to acquire the shares of the company against the will of Pranoy Roy and Radhika Roy, and the NDTV Executive Committee, it is called a 'Hostile Takeover'.
NDTV CEO Soprana Singh has also written to all the employees of the company.
Here the question is also important that Adani Group NDTV Attempting to gain control of V or to acquire more than 50% of its shares is in connivance with, with the consent of, or by coercion with, the existing promoters of the company.
If what Soprana Singh has said to the workers of the company is believed to be true, then the case here seems to be one of coercion.
It is also worth noting that a day before the Adani Group's announcement, NDTV had written to the stock exchange saying that a newspaper journalist had asked them whether Prannoy Rai and Radhika Rai were theirs. The holding company is selling its stake secured through the RRPA.
The company wrote to this journalist and the exchange that the rumors are baseless and that Radhika or Pranoy have not spoken to anyone about changing the ownership rights of the company nor do they intend to do so.
Both of them separately and through RRPL holding hold 61.45% of the total 'paid up capital' of the company.
It is also not new for a company to offer clarifications about a sale or a major stake. According to the rules, any such notification must first be given to the stock exchange.
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