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NDTV locked in upper circuit after resignation of Radhika and Prannoy Roy

Shares of New Delhi Television (NDTV) were locked in a 5 percent upper circuit after the company said its promoters had resigned from the directorship of one of the promoter group companies.

RRPR Holding Private Limited (RRPRH), which is the promoter of NDTV, said in an exchange notification late on November 29 that Prannoy Roy and Radhika Roy resigned as directors on the board with effect from the close of business hours of November 29, 2022.

Subsequently, Sudipta Bhattacharya, Sanjay Pugalia and Senthil Sinniah Chengalvarayan were appointed as directors of RRPRH with immediate effect.

Bhattacharya is the CEO of the Adani Group-North America. He is also the Chief Technology Officer (CTO) of the group. Pugalia and Chengalvarayan are veteran journalists.

The resignation of the Roys came a day after the firm transferred its shares constituting up to 99.5 percent of its equity capital to VCPL, which is owned by AMG Media Network Ltd (AMNL), the media arm of Adani group.

RRPRH, led by the Roys, took a loan of Rs 400 crore from VCPL over a decade ago. The terms of the loan agreement allowed VCPL to acquire a 29.18 percent stake in NDTV in case the loan was not repaid. The loan-issuing company was acquired by the Adani group in August, and subsequently, a share conversion warrant was issued.

This development comes amid the mandatory open offer, which will close on December 5. The pricing of the open offer–at Rs 294 a share – is significantly below the current share price of NDTV. By November 30 morning, the open offer was subscribed only 32 percent.

The Roys, however, still hold a 32.26 percent stake in NDTV in their individual capacities and continue on the board of the news channel. Prannoy is the chairperson of NDTV and Radhika the executive director.On November 30, the stock traded up 5 percent at Rs 447.70.