Adani Group's AMG Media Networks raises its stake in NDTV to 64.71%
Ahmedabad, December 30, 2022
AMG Media Networks Ltd (AMNL), a part of the Adani Group, through its indirect subsidiary RRPR, has acquired 27.26% stake in NDTV from its founders Radhika Roy and Prannoy Roy, resulting in a controlling stake of 64.71% in NDTV by AMNL through its subsidiaries.
Radhika Roy and Prannoy Roy continue to hold a 5% stake in NDTV, which the Adani Group said was "a welcome presence in NDTV’s new chapter".
Gautam Adani, founder and Chairman of the Adani Group said, “The Adani Group is privileged to further bolster NDTV with world-class infrastructure and talent and transform NDTV into a thriving multi-platform global news organisation.“
“I take this opportunity to thank Radhika Roy and Prannoy Roy for a friendly and seamless transition," said Sanjay Pugalia, CEO, AMG Media Networks Ltd. “One of the first things we plan to do is to strengthen and invest in the NDTV newsroom to be a multi-faceted multi-media digital platform. To grow NDTV’s digital reach via greater regional content, new formats, personalisation and interactivity with viewers would require more reporters, producers and editors supported by strong research tools. We will deliver news that really adds value to the lives of Indian citizens and those interested in India.”
A press release from AMNL said that, subsequent to change in control, the Board of NDTV has been further strengthened with the appointment of former IAS officer Sunil Kumar and former civil servant Aman Kumar Singh, in addition to Sanjay Pugalia and Senthil Chengalvarayan, who were appointed earlier.
"All the new directors have diverse experience in the fields of news, literacy and public policy, governance, media, branding, communication, technology, and economy and their rich set of competencies, skills and experience will be extremely valuable to NDTV. The actions will significantly accelerate value creation for all stakeholders, in line with the Adani Group’s business philosophy and will help to capture the growth in the market," the release said.
"NDTV is recognized as ‘India’s and Asia’s Most-Trusted News Broadcaster’. NDTV has a strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms. AMNL will build on this base, with greater, sharper, more relevant international content, to deliver a truly global news network," it said.
"There are synergies to be harnessed within the growing AMNL portfolio, like the one between BQ Prime and NDTV Profit. BQ Prime is one of India’s youngest and most credible financial news platforms with a purely digital presence. NDTV Profit is a business TV channel from the NDTV stable," the release added.
NDTV Limited operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit. It recorded a revenue of INR 421 crore with an EBITDA of INR 123 crore and net profit of Rs 85 crore in FY22 with negligible debt.
AMNL had announced on August 23 that it would indirectly acquire 29.18% stake in NDTV and launch an open offer to acquire upto 26% of the news television channel.
A press release from the Adani Group had said on that date that AMNL’s wholly owned subsidiary Vishvapradhan Commercial Private Limited (VCPL) held warrants of RRPR Holding Private Limited (RRPR), entitling it to convert them into 99.99% stake in RRPR. "VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR," it said.
RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV.
AMNL, a wholly owned subsidiary of Adani Enterprises Limited (AEL), houses the media business of the Adani Group. The company was recently incorporated to set up a credible next generation media platform with emphasis on digital and broadcast segments, amongst others. VCPL, which was recently acquired by AMNL, is its wholly owned subsidiary.
Adani Enterprises Limited (AEL) is the flagship company of Adani Group, one of India’s largest business organisations.