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NDTV share price jumps 3% after Adani acquires 29% stake, moves to buy more; should you buy, sell, hold?

NDTV share price jumped more than 3% today to Rs 380 apiece on BSE, after Gautam Adani-led Adani group made a move to acquire a controlling stake in the television news network on Tuesday.

NDTV share price jumps 3% after Adani acquires 29% stake, moves to buy more; should you buy, sell, hold?
Adani’s media unit AMG Media Networks Ltd has exercised the rights to convert the outstanding loan to NDTV’s holding company, resulting in acquisition of a 29.18% stake in NDTV. Image: Reuters

NDTV share price jumped more than 3% today to Rs 380 apiece on BSE, after Gautam Adani-led Adani group made a move to acquire a controlling stake in the television news network on Tuesday. NDTV stock has risen 42.17% in the last one month, while it has skyrocketed 186.49 per cent in the last six months. On a year-to-date (YTD) basis, NDTV share price has soared 237.71%. NDTV stock hit a new 52-week high for the second consecutive day on Wednesday. Adani’s media unit AMG Media Networks Ltd has exercised the rights to convert the outstanding loan to NDTV’s holding company, resulting in acquisition of a 29.18% stake in NDTV.

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Thereafter, the Adani unit will launch an open offer as required by capital markets regulator SEBI (Securities and Exchange Board of India) to buy another 26 per cent in the company from shareholders at Rs 294 per share, the company said in a stock exchange filing. Analysts say that with an almost recession proof industry model, 24×7 news channels are a good investment especially NDTV whose financials were just about improving since the past 2 years.

However, an analyst cautioned about the already high price of NDTV stock. “The stock of NDTV has already run up phenomenally and based on this news, Rs 418-430 could be achieved. But investors should not chase the stock at current levels and wait for a dip near ideally 292 to buy from a long-term perspective,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.

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In the previous session, NDTV stock price hit a fresh 52-week high of Rs 374.70 apiece. While Adani Enterprises share price fell nearly one per cent to Rs 3,023.65 apiece. Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com that NDTV has broken out above 275 level; since then it is under a strong up move. “Investors can continue holding on to this stock and maintain a trailing SL of 341 on a closing basis. For anyone who is contemplating fresh entry should also maintain this level as a SL,” Vaishnav advised investors.

In a BSE filing, NDTV said that without any discussion with the news channel or its founder-promoters, a notice has been served upon them by Vishvapradhan Commercial Private Limited (VCPL), stating that it has exercised its rights to acquire 99.50% control of RRPR Holding Private Limited (RRPRH), the promoter-owned company that owns 29.18% of NDTV. It also added that the notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. “The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at Rs 10 per share, and that a total of Rs 1.99 crores has been transferred to RRPRH,” it said.

The news channel also said that the NDTV founders and the company would like to make it clear that this exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only on Tuesday. “As recently as yesterday, NDTV had informed the stock exchanges that there was no change in the shareholding of its founders,” it added.

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