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Adani Group says regulatory nod not needed for NDTV share acquisition

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Reuters | | Edited by Nisha Anand

Adani Enterprises said on Friday that regulatory restrictions are not applicable to New Delhi Television Ltd’s (NDTV) top shareholder RRPR Holding Private Limited owned by founder Radhika and Prannoy Roy and they cannot ‘legally’ prevent share allotment to Adani Group.

On Thursday, NDTV sought to block billionaire tycoon Gautam Adani’s attempt to acquire majority shares in the news network, saying regulatory orders prevent them from transferring shares.

RRPR, owned by NDTV founder-promoters Radhika and Prannoy Roy hold 29.18% stake in the news network.

The Roys were prohibited from accessing the securities market in November 2020 as Securities and Exchange Board of India (SEBI) had investigated two separate cases involving loans and insider trading against promoters of NDTV.

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In its order, the market regulator had restrained “the Founder-Promoters Dr. Prannoy Roy and Mrs. Radhika Roy from accessing the securities market, and further prohibiting buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever”.

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“Performance of obligations by RRPR pursuant to the warrant exercise notice will not result in violation of the Sebi order as there is no, direct or indirect, dealing in any securities of Mr. Prannoy Roy or Mrs. Radhika Roy pursuant to the exercise of the warrants by VCPL allotment of shares by RRPR,” Adani Enterprises said in the stock exchange filing.

“RRPR is therefore bound to immediately perform its obligation and allot the equity shares as specified in the Warrant Exercise Notice,” it added.

AMG Media Networks Limited (AMNL), a subsidiary of Adani group announced on Tuesday that it will indirectly acquire a 29.18% stake in media and news network NDTV and launch an open offer to acquire another 26%.

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