Adani Group’s NDTV to launch 9 regional news channels, seeks I&B Ministry’s nod

Gautam Adani-controlled New Delhi Television Limited’s (NDTV) board of directors has approved the proposal to request the Union Ministry of Information & Broadcasting for permission to launch nine regional news channels in different Indian languages. The meeting was held on May 17.

The NDTV, which was previously controlled by Prannoy Roy and Radhika Roy, will inform the stock exchanges about the launch dates of these channels once the Ministry of Information & Broadcasting clears the plan.

In August last year, Adani Group said its media unit will buy a majority stake in NDTV. Adani's unit indirectly bought a 29.18 per cent stake in NDTV and then launched an open offer for another 26 per cent stake.

In December 2022, Adani Group gained full control of NDTV after it acquired most of the stake of founders, Prannoy Roy and Radhika Roy, at a premium of almost 17 per cent over the rate it paid to minority shareholders of the firm. On December 30, 2022, AMG Media Networks Ltd (AMNL) acquired a 27.26 per cent stake in NDTV through its subsidiary RRPR Holding Private Limited, granting AMNL a controlling interest of 64.71 per cent in the media company. The Roys still hold a 2.5 per cent stake each in NDTV.

The media company reported a significant decline in net profit for the quarter ending March 2023, with a decrease of 97.5 per cent to Rs 59 lakhs compared to Rs 24.16 crore in the same quarter last year. The company also experienced a decline in consolidated revenue from operations, down by 35.5 per cent to Rs 66.96 crore from Rs 103.8 crore in the previous year.

In its Q4 results, the company noted that the EBITDA margins were impacted by Rs 4.80 crore due to one-time expenses related to severance pay and one-time write-off provisions.

NDTV said it has taken steps to reduce external borrowings, lowering it to Rs 3 crore during the quarter under review, down from Rs 9 crore the previous year.

Additionally, the company's cash and cash equivalents amounted to Rs 103.6 crore for the quarter, a decrease from Rs 116.4 crore in 2022.

To date, NDTV’s share prices plunged by almost 39 per cent after Hindenburg Research published its scathing report on Adani Group in January accusing it of engaging in large-scale stock price manipulation, falsely overinflating the value of their assets.

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