Media firm NDTV today said its promoters Prannoy and Radhika Roy individually and through their company RRPR Holding Private Ltd continue to hold 61.45 per cent shares of the company.
Media firm NDTV today said its promoters Prannoy and Radhika Roy individually and through their company RRPR Holding Private Ltd continue to hold 61.45 per cent shares of the company. This clarfication comes after the capital markets regulator Sebi last week ordered a little-known entity, Vishvapradhan Commercial, to make an open offer for NDTV Ltd for indirectly acquiring control of up to 52 per cent stake through a convertible loan of Rs 350 crore in 2009 ‘sourced’ from a subsidiary of Reliance Industries.
“…There has been no change in control as Prannoy Roy and Radhika Roy individually and through their company, i.e., RRPR Holding Private Ltd continue to own and hold 61.45 per cent of the total paid up share capital of NDTV, and control NDTV,” NDTV said in a regulatory filing. NTDV’s shares have shot up by 74 per cent since stock closing price of June 26.
The company’s stock today hit upper circuit at Rs 56.55 apiece on the BSE. The ownership of Delhi-based ‘wholesale trading’ firm Vishvapradhan Commercial Private Ltd (VCPL), incorporated in 2008, is said to have later changed hands from RIL to Nahara group, from which the Mukesh Ambani-led firm had bought Infotel Broadband in 2010 to re-enter the telecom business.
The order follows a probe into alleged violation of takeover norms by VCPL regarding the loan with a 10-year tenure ending July 2019, with various clauses giving it control for up to 52 per cent of the media firm, the regulator had said. Separately, Sebi is also understood to have issued show -cause notices in this case to NDTV’s promoters — Prannoy Roy, his wife Radhika Roy and their holding firm RRPR — for alleged non-disclosure of the loan pact with VCPL and affiliate entities.
While ordering the open offer — for buying up to 26 per cent shares in NDTV from public shareholders as per Sebi rules — the regulator observed that VCPL had — in a letter dated March 25, 2016 — stated that the “source for the loan was the borrowing from Reliance Strategic Investment Ltd, a wholly owned subsidiary of Reliance Industries Ltd”. While the Sebi order did not get into details of VCPL’s ownership structure, it observed that the company had a revenue of only Rs 60,000 in FY2017 and more than Rs 400 crore in long term loans and advances.