Adani Group may become the new owner of NDTV, but why would Adani like to own it is a multimillion question
The stage is set for the transfer of ownership of NDTV Ltd from Dr Prannoy Roy and his wife Radhika Roy to India's richest man Gautam Adani. The Adani group owns VCPL the company from which NDTV promoters had secured a loan of around Rs 400 crores way back in 2008. At that time VCPL was indirectly owned by Reliance Group which later sold the Company to Adani. The loan had a clause that the loan could be converted into equity with a caveat that the consent of the promoters of the company was mandatory. Right now the situation is such that Roys'Company RRPR, owns 32 percent whereas if the loan amount is converted into equity Adani Group would have a 29.2% stake in the broadcaster. In a bid to take control and that is where a hostile takeover comes in it is offering to buy another 26% from the open market. Thereafter it would be the biggest stakeholder in NDTV Ltd surpassing 32% stakes held by RRPR.The chances of a long-drawn legal battle are on the horizon and chances are that Adani Group by its sheer clout and capital would rule. India is not America where Elon Musk is still struggling to take control of Twitter despite having spent billions to own and control the microblogging site.
The big question however is why Adani is so keen to own a TV channel whose balance sheets are not that lucrative. Sanjay Pugulia CEO of Adani Group says they would make the NDTV news delivery world-class. Indeed they have the resources and means to do so but would they to adhere to its ethos is something we would know much later. NDTV would be the first outpost of Adani Group in the media business. They could have easily started a new TV channel if they really wanted to enter the media business, they chose NDTV instead through a hostile takeover. It is a known fact that NDTV has had an anti-establishment stance for the last eight years and has been vocal in criticizing the Modi government. Adani's proximity to the government is no secret either. Should the takeover bid be successful it would indeed change the character of the Delhi-based broadcaster and lean like many others on the government side. It would so much suit the powers that be. Dr Roy would indeed have to show mettle to stand up to foil such a bid. Takeover notwithstanding TV channels have lost a good amount of their credibility and if the NDTV joins the choirs it might prove to be the proverbial last straw.
