The shares of New Delhi Television (NDTV) Lts have been galloping ever since Adani group made an open offer to acquire 26 per cent stake in the satellite channel company.
On Tuesday, at the BSE, the NDTV scrip, with a face value of Rs 4, opened at Rs 467.25 and hit the upper circuit. The scrip had closed at Rs 445 on Monday.
Incidentally, the 52 week low price for the scrip was Rs 72.
The scrip has been on the upswing since August 23, the day on which the Adani group's AMG Media Networks announced its subsidiary Vishvapradhan Commercial Private Ltd's (VCPL) decision to exercise its rights to acquire 99.5 per cent of equity shares of RRPR Holding Private Ltd, the investment company of NDTV promoters - Prannoy Roy and Radhika Roy.
The VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into 99.99 per cent stake in the latter.
The VCPL has exercised its option in part, resulting in acquisition control of RRPR Holding - 1,990,000 equity shares or 99.50 per cent.
RRPR Holding holds 29.18 per cent stake in NDTV that has three national television channels.
This triggered the issue of open offer to acquire shares of NDTV from the public as per SEBI's (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The VCPL, at its sole discretion, may exercise the balance warrants to acquire up to 99.99 per cent of the equity share capital of RRPR Holding at any time and in such manner as it may deem fit.
With an open offer to acquire 26 per cent, the Adani group is looking up to hold 55.18 per cent stake in NDTV.
Curiously, the open offer price is at Rs 294 per share which is far less than the current market value and also the market value of the share - Rs.384.50 - on the date of the open offer.
Since the day the open offer was made, the NDTV scrip has been of up. On August 24, the scrip closed at Rs 384.50, on August 25 at Rs 403.70, on August 26 at Rs 423.85, on August 29 at Rs 445 and on August 30, at Rs 467.25.
