Source: PGurus
Buying and selling companies are very common in business fields. But NDTV's founders said they don't want to sell NDTV, but Shares were sold without any discussion, consent, or notice, and such amounts of shares went to Adani Group. And Adani Group made an open offer for another 26% to take majority control of NDTV.
Ndtv, Rrpr, and Its Shares
On August 23, 2022, Adani group announced that a 29.18% stake in NDTV group is now held by Adani Group. But whose shares have Adani acquired and problems are arising? NDTV's total shares are 6 crores 44 lakh, out of this, 15.94 shares (Prannoy Roy), 16.32% shares ( Radhika Roy), and 29.18% shares also have RRPR Holdings Pvt. Ltd, which is owned by Radika and Prannoy Roy.
And these RRPR companies' shares are the root of the controversy. The remaining 28.81% of shares belong to the public and are listed in the share market.
First News Channel
NDTV was started by the Roy's ( Prannoy and Radhika) in 1984. It was India's first private news channel. At that time not it was not allowed for private companies to broadcast news. It was collaborating with Doordarshan.
NDTV was the first news channel to be listed in the share market. This channel hired famous people Rajeev Sardesai, Arnab Goswami, Nidhi Razdan, and Barkha Dutt, which greatly increased the popularity of the channel. The channel was at its peak at that time.
In 2007 Prannoy and Radhika Roy's company RRPR, took the first loan of 501 crores from Indiabulls Financial Services for a buyback of a 7.73% stake from GA Global. But, at that time, after the US financial crisis, it affected the market around the world and the stock market went down.
To repay the loan to Indiabulls, Roy's again took a second-time loan for 375 crore Rupees at 19% interest, from ICICI bank. All loans are taken by mortgaging the shares of RRPR Pvt Ltd, to repay the loan for ICICI.
In 2009-10, they took a third-time loan of 403.85 crores from Vishvapradan commercial Private Limited ( VCPL), this company was founded in 2008, and this company took money from Reliance Strategic Investments and gave it to Roy. They gave a loan to Roy without security and didn't take any interest either.
But, In return, VCPL had a mortgage of 29.18 % shares of RRPR and said that we can buy the 99.9% of RRPR whenever we want. The Roy's also agreed to this condition and signed an agreement at that time, after this it is almost certain that RRPR would be sold later. That means the control of NDTV can go to other hands, and Adani Group took advantage of that agreement.
Hostile Takeover
Adani Group bought VCPL only at 1.03 billion Rupees. Now, Adani had the option to convert these warranty shares of 29.18% into ownership, and Adani chose that option in August 2022, and he gave an open offer for a further 26% shares. There are many foreign companies, which have direct or indirect connections to the Adani Group and can sell their NDTV shares to them.
Adani can then achieve 55% of the stake in NDTV. Afterward, Adani Group would then control NDTV, because Radhika and Prannoy Roy own only 32% of the stake of NDTV. The founders and workers of NDTV do not want to be,źsold. Roy's doesn't have enough money to save NDTV, this is the reason, this process is being called a Hostile Takeover. But every process is legally correct.
SEBI Regulation 2011
When a company takes more than 25% share, another company like Adani took 29.18% shares of NDTV. In this type of case, they can offer money to the rest of the shareholders to purchase the rest of the shares, and they can increase their shares to more than 50% and become the owner of that company.
Now, all problems here are between Adani and Roy to become the owner of NDTV. Till now NDTV's problem was with money, which was being handled by laking loans. But this time the matter has come to the ownership of their NDTV.
Why Did Adani and Ambani Enter a Media Company?
Reliance owns many news channels network 18, and CNBC. Adani also opened the AMG media company and acquired Bloomberg Quint recently and now NDTV. According to Forbes's top 100 Richest Indians, Gautam Adani is the richest man in India. They are not entering to earn money, but they want to wield power by dealing with different governments.
P.M. Narendra Modi is said to have a strong connection with businessman Gautam Adani. In 2014 congress leader Rahul Gandhi claimed," when Modi was C.M. of Gujarat, he doled out 45,000 acres of land at Rupee 1/ sq meter to Adani". In 2018, BJP leader Subrahmanyam Swamy claimed " The biggest NPA(Non-performing assets) trapeze artist in Public Sector Undertaking ( PSUs) is Gautam Adani. It is time he is made accountable for public interest litigation ( PIL).
Issues Have Shown on the Channel
Many news channels constantly show content on Hindu Muslims, Pakistan, and China. These biased media keep on spreading communal propaganda, showing communal debates on TV to brainwash the public and divert attention. But, Ravish Kumar on NDTV talks about education jobs and unemployment.
When Ravish talks about communal issues in his program, after watching this, you do not feel hatred towards other religions. At other times many channels show news attacking the opposition party. Although, the media's role is to question the incumbent government. But most of the channels are trying to please the government. And NDTV was not to do this.
Therefore, India's Press Freedom Index Ranking has been falling and In 2022, according to the World Press Freedom Index ranking, India ranks at 150th position out of 180 countries. Because of these reasons, there is no scope for ethical journalism in media companies and many famous journalists start their YouTube channels to further their independent work.
NDTV is considered to be one of the media companies critical of the BJP and the policies of the Indian government. Since Ravish Kumar kept doing their work without being influenced by anyone, he was targeted and trolled in his every work. In 2016, the government placed a One Day Ban on NDTV India, citing the issue of National Security.
Since 2014, the Income Tax Department and ED have been investigating NDTV. In 2017, CBI raided Prannoy and Radhika Roy for bank fraud. In 2019 Ravish Kumar said, if his channel was banned, " I can read the news on the road, is it written in the constitution that a reporter shall read the news only in a studio."
Resign From NDTV
After the Adani Group'd Takeover first Radhika and Prannoy Roy resigned from directors of RRPR and Ravish Kumar also resigned from NDTV. President of NDTV group, Superna Singh said that " Few journalists have impacted people as much as Ravish did.
This reflects in the immense feedback about him; in the crowds he draws everywhere; in the prestigious Award and recognition he has received, within India and internationally; and In his daily report, which champion the rights and needs of those who are under-served."
He was to host several shows such as Hum Log, Ravish Ki Report, Des Ki Bat, and Prime Time. Ravish Kumar is a winner of the Ramon Magsaysay Award in 2019. He has also been conferred with the Ramnath Goenka Excellence in Journalism Award twice.
Written by Jyoti Malik
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