New Delhi Television (NDTV) shares remained locked at the 5% upper circuit on the BSE on Wednesday, reaching a 14-year high of Rs 384.50 after Gautam Adani‘s firm announced on Tuesday that it will acquire a controlling stake in the company.

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The stock was trading at its highest since August 2008. In comparison, the S&P BSE Sensex rose 0.12% to 59,099 points. In the last three months, the stock price of NDTV has increased by approximately 140%, compared to an 8% increase in the S&P BSE Sensex. It increased 382% in a year, compared to a 6% increase in the benchmark index.

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Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMG Media Networks Limited (AMNL), possesses warrants of RRPR Holding Private Limited (RRPRH) with the right to convert them into a 99.99% stake in RRPR. VCPL executed warrants to purchase a 99.5% share in RRPR. According to Adani Enterprises (AEL), such purchase will result in VCPL gaining control of RRPR. AMNL, a wholly-owned subsidiary of AEL, houses the media business of the Adani Group. 

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RRPR is an NDTV promoter group that owns 29.18% of the company. According to the corporation, VCPL, along with AMNL and AEL (persons acting in concert), would launch an open offer to buy up to a 26% share in NDTV in accordance with the SEBI‘s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

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However, NDTV stated in an exchange filing that, without any conversation with the company or its founder-promoters, VCPL served them with a notice claiming that it (VCPL) had exercised its rights to acquire 99.50% control of RRPRH, the promoter-owned Company that owns 29.18% of NDTV.

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The VCPL notice is based on a loan agreement signed in 2009-10 with NDTV founders Radhika and Prannoy Roy. According to the notice, VCPL has exercised its option to convert 1.99 million warrants into equity shares of RRPRH at Rs 10 per share, for a total of Rs. 1.99 crore transferred to RRPRH.

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The document submitted to stock markets on Tuesday evening states that the open offer for 26% of NDTV has a value of Rs 493 crore. The open offer price has been set at Rs 294 per share, a 19.7% reduction to Tuesday’s closing price of Rs 366.2 a share, according to the Business Standard.