Adani Group Cannot Acquire Stake In RRPR Limited, Without SEBI's Approval

Visvapradhan Commercial Private Limited (VCPL), an Adani group company owned by veteran Gautam Adani, needs SEBIs approval to acquire stake in RRPR Limited, the promoter arm of NDTV. The acquisition is to be made against the interest-free loan given by VCPL to RRPL. NDTV has told in the information given to the stock market that, on November 27, 2020, the Securities and Exchange Board of India (SEBI) had banned promoters Prannoy and Radhika Roy from buying and selling shares in the securities market. This ban ends on 26 November 2022.

The company has further said that "Till the pending appeal proceedings are not completed, SEBI approval is required for the proposed acquirer for 99.5 percent stake in the promoter group." The Adani Group, which has acquired 29.18 percent stake in NDTV, said It will bring an open offer to buy an additional 26 percent stake. To which NDTV said, "The Adani Group should be stopped from making an open offer. Legal experts are of the view that the matter may now be in legal trouble." Ravi Kumar, Partner Indus Law has said in this case that, prior consent of the issuing company is not necessary to convert the warrant into equity shares. The matter really depends on the contract and any dispute will be decided on the basis of the prescribed conditions. Shaubhik Das Gupta, Partner, Pioneer Legal said, "If the acquisition is challenged, there could be a protracted legal battle."