NDTV promoter entity, Adani group approach SEBI on warrants conversion

The media group's promoters have asserted that the deal cannot go ahead without SEBI's nod

Adani group and NDTV's promoter entity RRPR Holding Ltd have approached SEBI, seeking clarity on the applicability of the regulator's earlier order regarding the conversion of warrants into shares, a decisive factor in the hostile takeover battle for the media group.

Days after Adani group on August 23 announced acquiring a 29.18% stake in NDTV through the acquisition of VCPL, which holds a 99.99% stake in RRPR Holding, the media group's promoters have asserted that the deal cannot go ahead without SEBI's nod.

In an order passed on November 27, 2020, the Securities and Exchange Board of India (SEB) restrained NDTV founders—Radhika Roy and Prannoy Roy—from the securities market for two years and that period ends on November 26.

As restrictions are still in force, hence a prior written approval from SEBI was required for Vishvapradhan Commercial Private Limited (VCPL) for the exercise of the conversion option on the warrants, NDTV founders had said.

Against this backdrop, both sides have approached SEBI for clarity on the issue and the regulator's response will be crucial in the takeover battle.

In a filing to the stock exchanges on Monday, NDTV said its founders have informed that RRPR Holding has written a letter on August 28 to SEBI, "asking it to determine whether the Sebi order dated November 27, 2020, restricts the conversion of warrants issued to VVCPL into equity shares of the promoter group vehicle RRPRH".

Hours later, Adani Enterprises informed the bourses that VCPL has also sought clarity on the warrants conversion matter.