InvestorQ : What has led to this sharp rally in NDTV. Is it the Adani magic?
shrinidhi Rajan made post

What has led to this sharp rally in NDTV. Is it the Adani magic?

4 weeks ago

The stock of New Delhi Television (NDTV) continued its northward movement and the journey has been absolutely relentless. It has already crossed the Rs500 mark for the first time since January 2008, hitting a high of Rs515.10. it had touched the previous high of Rs512 in January 2008. Yes it is largely attributable to the Adani effect. In fact, the stock has surged over 45% in just over a week after Adani group initiated the move to buy majority stake in the company via an open offer. The price of NDTV has doubled in last 1 month.

On August 30th Adani group published the NDTV's open offer intent, which will open on October 17th, 2022. It is still subject to regulatory approval. The deal is still controversial with both the NDTV group and the Adani group seeking the guidance of SEBI on whether or not RRPR Holdings can transfer their shares to the Adani group. NDTV gas argued that it cannot transfer the shares till November 2022 due to the ban imposed by SEBI. There is also a CBDT angle which NDTV is trying to insert.

Meanwhile, Adani Enterprises has flatly rejected RRPR Holding's contention over Income Tax department's nod to convert warrants into equity shares, since the agreement on warrants preceded the ban on transfer imposed by the CBDT on the Roy family. RRPR is the promoter group entity of NDTV, which is the subject of acquisition by the Adani group. Adani has rejected the contention as being misconceived. However, the open offer price holds the key since at Rs294, it is way below the current market price.