NDTV founders Prannoy Roy and his wife Radhika Roy on Friday, December 23, said they will sell all but 5% of their remaining shareholding in the news broadcaster to Adani Group for up to Rs 647.6 crore. The Roys, who founded New Delhi Television Ltd (NDTV) as India's first and largest private producer of news current affairs and entertainment television, lost their status of being the company's largest shareholder in recent weeks.
This follows Adani Group becoming the majority shareholding of NDTV, after first buying out a company backed by the founders and then acquiring more shares from the open market. Now, the Roys are selling 27.26% out of their remaining 32.26% shareholding in NDTV, according to stock exchange filings by the company. The sale will happen on or after December 30 in one or more tranches, it said without disclosing the price. The volume-weighted average market price of NDTV in the last 60 trading days is Rs 368.43, the filing said. Post-acquisition of the founders' stake, Adani Group will control 69.71% of NDTV.
"The (Adani Group firm) AMG Media Network, after the recent open offer (made to minority shareholders after buying out promoter firm), is now the single-largest shareholder in NDTV. Consequently, with mutual agreement, we have decided to divest most of our shares in NDTV to the AMG Media Network," the founders said in a statement to the stock exchanges.
The announcement came within hours of the NDTV board appointing two nominee directors of the Gautam Adani-run conglomerate on the board. "Since the open offer (by Adani Group) was launched, our discussions with Gautam Adani have been constructive; all the suggestions we made were accepted by him positively and with openness," the Roys said in the statement.
"We started NDTV in 1988 in the belief that journalism in India was world-class but needed a strong and effective broadcast platform that would allow it to grow and shine. After 34 years, we believe that NDTV is an institution that has met so many of our hopes and ideals; we are so proud and grateful that across the globe, NDTV is recognised as 'India's and Asia's Most-Trusted News Broadcaster," the founders said in the statement.
Adani, they said, "has invested in a brand that is synonymous with Trust, Credibility, and Independence, and we are hopeful that he will preserve these values and expand upon them with all the responsibility required of a leader of an organisation of this nature."
"We look forward to watching NDTV, and its entire extraordinary team, delivering the next phase of growth, one that India can be proud of," they added.
Prannoy Roy started producing 'The World This Week' in 1989. He produced live coverage of the annual Union Budget in the following year and went on to host an analysis of general and state election results. NDTV entered into a contract with STAR/NTVI for producing news content for its 24 hours news channel in 1997 and during the same year entered into a contract with BBC India to produce a substantial portion of its content sourced from India.
In 1998, the company started production of content for the Star News channel and launched NDTV Online with MSNBC. NDTV had launched its news channels 'NDTV 24X7' and 'NDTV India' on April 14, 2003. It launched its business channel 'NDTV Profit' on January 17, 2005. It was listed on bourses in 2007.
Currently, Prannoy Roy is the chairperson of NDTV while his wife Radhika Roy is an executive director. Prannoy Roy owns a 15.94 percent stake and Radhika Roy another 16.32 percent. Prior to Adani Group's hostile takeover, promoters held 61.45% shares in NDTV. This included 1.88 crore shares or 29.18% held by RRPR Holding Pvt Ltd. RRPR Holding Pvt Ltd is the firm that Adani Group indirectly acquired in August, triggering an open offer to buy a further 26% of the media company.