RRPR bound to allot equity, its contentions legally untenable: Adani Group
The conglomerate’s response comes after the NDTV promoter sought to buy more time citing a SEBI order.
Responding to disclosures by NDTV promoter RRPR Holding Private Limited, the Adani Group has said that the promoter’s contentions are “baseless” and “legally untenable”, and it is bound to “allot equity shares as specified in the warrant exercise notice”.
Trying to resist a takeover of the network by the Adani Group, the RRPR – which holds over 29 percent stake in NDTV and is owned by Radhika Roy and Prannoy Roy – had claimed that a November 2020 order by the Securities and Exchange Board of India restricted them from accessing the security markets for a period of two years. Citing this, the RRPR said, a SEBI approval would be required to convert its 19,90,000 warrants into 19,90,000 equity shares. The two-year period is set to end on November 26, they said.
Bringing in some hope for the network, it seemed the SEBI order could buy RRPR more time to hand over its 29.18 percent stake – the promoters were given two days to do the same after Adani’s takeover of VCPL.
However, the Adani Group said, “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 and allotment of shares by RRPR.”
“The contentions raised by RRPR in the letter are baseless, legally untenable and devoid of merit. RRPR is therefore bound to immediately perform its obligation and allot the equity shares as specified in the warrant exercise notice.”
The conglomerate also said that “VCPL expressed surprise at the stand taken by NDTV”. “It appears that NDTV has adopted the stand taken by RRPR.”
Following Adani’s takeover of VCPL, the group had also made an open offer to buy another 26 percent of the network and to pay Rs 294 per share.
While referring to the same offer, the response said, “It also called upon NDTV to provide all information/documents and immediately comply with the requests made by VCPL in furtherance to the open offer.”
NDTV may get more time to hand over 29.18 percent stake to Adani
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