Controlling stake premium of NDTV founders could fetch over Rs 800 crore

The promoters of New Delhi Television (NDTV), Prannoy Roy and Radhika Roy, are likely to receive a significant premium of 25 percent from the Adani Group for offloading its controlling stake. Roys are offloading 26.27 percent of their stake (1.75 crore shares) to the Adani group. They have managed to retain 5 percent of their stake. The premium is in accordance with the guidelines of Securities and Exchange Board of India (SEBI). The acquisition price cannot exceed 25 percent of the volume weighted average market price for a period of 60 trading days according to the guidelines. This implies that Roys could get as much as Rs 810 crore (at Rs 460.54 per share), given that the volume weighted average market price for a period of 60 trading days was Rs 368.43.For the ordinary shareholders that closed on 5 December, the premium is over 50 percent more than the open offer price of Rs 294. The final payout will be known later this week as stated in a report by Financial Express. As per the SEBI’s Substantial Acquisition of Shares and Takeovers Regulation, 2011 (SAST Regulations), both promoters and ordinary shareholders are going to earn the same price if they sell shares at the time of open offer. There are 3 options for calculating the price.The calculation can be done based on the volume-weighted average price over 52 weeks, 26 weeks, or 60 trading days preceding the public announcement date. Since the Roys have struck the deal post offer, the above mentioned rule is not applicable. After the Adani group purchased Radhika Roy Prannoy Roy RRPR Holdings, it was called hostile and Roys had been mulling a legal challenge.After the acquisition, the open offer was triggered automatically. After the open offer closed, the deal was struck by the Roys separately.Roys said in a joint statement to stock exchanges that Gautam Adani has invested in a brand that is synonymous with credibility, trust, and independence. They added, “We are hopeful that he will preserve these values and expand upon them with all the responsibility required of a leader of an organisation of this nature.”Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.