NDTV buyout: No restrictions on RRPR for converting warrant

Adani Enterprises’ subsidiary Visvapradhan Commercial (VCPL) has said that RRPR Holding, the NDTV promoter group company, won’t be needing approval from Income Tax Department for converting warrants into equity shares.

Last month, VCPL informed RRPR Holding that it was using its power to convert warrants issued three years ago into equity shares; this effectively gave them control of 99.5% of RRPR Holding.

RRPR had informed that it required the IT department’s approval for converting the warrants that stood at 29.18%. Adani Enterprises dismissed this saying that its assertions are not based on law.

VCPL claimed that it had sought clarification from the IT department on the issue. The department clarified that there were no limitations on RRPR for carrying out the exercise of warrants into equity.

“The prohibition under orders u/s 281B during the period of their operation is on M/s. RRPR Holding Private Limited for selling or transfer of its shareholding in M/s. New Delhi Television Limited and from creating/causing any charge only, irrespective of the shareholding pattern of M/s. RRPR Holding Private Limited who exercises control thereon and not on the issuance of shares of M/s. RRPR Holding Private Limited,” said the IT department’s reply.

It was on August 23 that Adani surprised the media fraternity by announcing that it had acquired 28.18% stake in NDTV and would make an open offer to buy an additional 26 per cent.