NDTV-Adani tussle: RRPR writes to SEBI to seek clarification on 2020 order

NDTV founders Radhika and Prannoy Roy informed New Delhi Television Limited that its promoter group RRPR Holding Private Limited has written a letter to market regulator Securities and Exchange Board of India seeking clarification on its 2020 order. In a BSE filing, the company stated that the letter dated August 28, 2022, seeks to clarify whether the SEBI order dated November 27, 2020, restricts conversion of warrants issued to Vishvapradhan Commercial Private Limited (VCPL) into equity shares of RRPRH. 

VCPL had, in a notice to RRPRH on August 23, intimated that it was exercising its rights to convert warrants issued to it in 2009 into equity shares, which would give it control of 99.5 per cent of RRPRH.

The 2020 SEBI order had also restrained the Roys from "accessing the securities market, and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with securities market in any manner whatsoever; for a period of 2 years, which expires on November 26, 2022.” 

The ongoing tussle between Adani Group and NDTV came about after VCPL, a subsidiary of the conglomerate’s AMG Media Networks said that it acquired 29.18 per cent stake in the media company by converting its warrants into equity shares to acquire RRPR Holdings. Adani also offered to acquire another 26 per cent in NDTV. Adani Group had acquired VCPL at a value of around Rs 113.75 crore through AMG Media Networks.

Soon after the announcement, the media company said that the conversion cannot go through as an earlier order by SEBI had barred such activity. 

According to Adani Enterprises, NDTV is obligated to fulfill the contractual obligations towards VCPL. “VCPL, therefore, does not agree with RRPR that prior written approval from SEBI is required for allotment of shares to VCPL on exercise of warrants," it said in an earlier exchange filing.

Also read: NDTV vs Adani Group: Media major appears to be on a weak ground, say lawyers

Also read: Adani Group vs NDTV: VCPL hits back, says RRPR not party to restrictions under SEBI order