The stock market was upbeat on Tuesday after the Adani group acquired a 99.5 per cent holding in RRPR Holding Private Ltd, the promoter group vehicle of news media company New Delhi Television Ltd (NDTV).

Accordingly, NDTV’s scrip opened at Rs 420 and touched a high of Rs 426.40 intra-day before closing at Rs 426.40 on Tuesday.

RRPR Holding is the investment company of NDTV promoters — Prannoy Roy and Radhika Roy — that holds a 29.18 per cent stake in NDTV, which has three national television channels.

In a regulatory filing on Monday, NDTV had said that it was informed by RRPR Holding that the latter issued equity shares on 28.11.2022 constituting 99.5 per cent of its equity share capital to Vishvapradhan Commercial Private Ltd (VCPL), which is a part of Adani group.

The shares have been issued in consonance with the conversion notice dated August 23, following the expiry of the two-year restraint period imposed by the Securities & Exchange Board of India (SEBI) in the matter of dealing in securities, on November 26.

According to NDTV, SEBI has not responded to a specific letter dated August 28 on behalf of RRPR Holding seeking clarification.

However, SEBI had approved the letter of offer (dated November 11) by VCPL (acquirer) along with AMG Media Networks Limited and Adani Enterprises Limited for acquiring up to 16,762,530 fully paid-up equity shares of the face value of Rs 4 each representing 26 per cent in NDTV.

The Adani group had earlier planned to make the open offer last month but decided to revise that to get SEBI’s nod.

Curiously, the open offer price is Rs 294 per share which is far less than the current market price.

As per the offer document, November 18 was the last date for an upward revision of the offer price and size. The offer opening date was November 22 and the closing date is December 5.

VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into a 99.99 per cent stake in the latter.

The VCPL has exercised its option in part, resulting in acquisition control of RRPR Holding — 1,990,000 equity shares or 99.50 per cent.

This triggered the issue of an open offer to acquire shares of NDTV from the public as per SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The VCPL, at its sole discretion, may exercise the balance warrants to acquire up to 99.99 per cent of the equity share capital of RRPR Holding at any time and in such manner as it may deem fit.

The second round for the Adani group is the open offer to acquire 26 per cent, to hold a 55.18 per cent stake in NDTV.