NDTV Says Promoter Firm Requires Nod From Income Tax Department For Warrant Conversion
Adani Group has sought to convert NDTV warrants held by Vishvapradhan Commercial into equity as part of its takeover bid.
RRPR Holding Pvt. Ltd., the promoter entity of New Delhi Television Ltd., has written to the exchanges stating that Adani Group firm Vishvapradhan Commercial Pvt. Ltd.'s allotment of NDTV shares will require Income Tax Department's approval.
RRPR Holding said the move by Vishvapradhan to convert warrants into equity shares of NDTV’s promoter group vehicle will "require approvals and/or clarifications from the Income Tax Authorities", according to an exchange filing.
It also invited Vishvapradhan Commercial to join its application to the income tax authorities seeking clarification over the deal.
"Equity shares of NDTV held by RRPR Holding were provisionally attached by the Income Tax Authorities in the year 2017, with notification in 2018 that the attachment shall remain in place until completion of reassessment proceedings," it said in an exchange filing.
RRPR Holding also cited a Securities Appellate Tribunal order dated July 20, 2022, stating "income tax authorities will be required to clarify whether in light of the SAT order, the provisional attachment will continue to operate on RRPR Holding equity shares held in NDTV."
It also said founders Radhika and Prannoy Roy may individually require independent approval from the Income Tax Authorities "to deal with any assets, including indirect shareholding in NDTV, arising from sub judice orders".
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.