Vishvapradhan Commercial Private Limited (VCPL), the wholly owned subsidiary of Adani Enterprises Limited’s AMG Media Network Limited (AMNL), has reacted to the stock exchange filing by RRPR stating Friday that the company is not a party to the SEBI ruling dated November 27, 2020, and that it is compelled to comply with contractual terms.

Also Read| Congress slams Adani’s NDTV hostile takeover

”The warrant exercise notice has been issued by VCPL under a contract which is binding on RRPR,” VCPL said in its response. RRPR is the promoter group vehicle of New Delhi Television (NDTV).

”Performance of obligations by RRPR pursuant to the warrant exercise notice will not result in violation of the SEBI order… VCPL, therefore, does not agree with RRPR that prior written approval from SEBI is required for allotment of shares to VCPL on the exercise of warrants,” it added.

Also Read| NDTV shares surge 5% to 14-year high after Adani group acquires 29% stake

“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,” as per VCPL’s statement.

The Adani Group may not be able to complete its acquisition of RRPR Holdings without the market regulator’s clearance, according to NDTV’s regulatory filing on August 25. The comment came after Adani Group declared that it will purchase 29.18% of the company and make an open offer for the remaining 26%.

The open offer for a 26% stake in NDTV has a value of Rs 493 crore, according to the papers provided to stock exchanges on Tuesday. The open offer price has been set at Rs 294 per share, a 30.63% decrease from Friday’s opening price of Rs 423.85 per share.

Also Read| Adani Firms to buy 29.2% stake in NDTV, launch open offer for another 26%

The open offer being way below the market price puts a doubt on the seriousness of Adani Group to increase its stake in NDTV above 50% as selling shares for over 30% less than the market price makes no sense for those wanting to gain by selling, especially those holding a higher number of shares.

The stock of NDTV was trading at its highest since August 2008. In comparison, the S&P BSE Sensex rose 0.51% to 59,077.10 points. In the last three months, the media company’s stock has increased by approximately 140%, compared to an 8% increase in the S&P BSE Sensex. It increased 441% in a year, compared to a 5.41% increase in the benchmark index.

Also Read| Adani Group needs Sebi permission to secure stake in RRPR: NDTV

NDTV reported a 55.85% increase in its consolidated net profit to Rs 25.81 crore for the first quarter ended June 30, 2022. Its revenue from operations increased 26.72% to Rs 107.74 crore and total expenses rose 6.94% to Rs 83.33 crore in Q1 FY 2022-23.

According to a press release, VCPL has exercised its right to buy “99.5% of the equity shares of RRPR Holding Private Limited”, the promoter company of NDTV that owns 29.18% of the media group.

On August 23, NDTV explained that there was no consent from its founders for VCPL to exercise its rights to acquire 99.50% control of RRPR. According to the company, the rights were “executed without any input from, conversation with, or consent of the NDTV founders.”

New Delhi Television (NDTV) shares remained locked at the 5% upper circuit on the BSE on Friday, reaching a 14-year high of Rs 423.85.