Promoter entity needs Income Tax dept nod for warrant conversion: NDTV

News network's founders Radhika and Prannoy Roy may individually require independent approval, it says

RRPR Holding, the promoter entity of New Delhi Television (NDTV) told stock exchanges on Thursday the move by Vishvapradhan Commercial (VCPL) to convert warrants into equity shares would "require approvals and/or clarifications from the Income Tax Authorities".

It also invited VCPL to join its application to the Income Tax authorities seeking clarification over the deal by the Adani Group to buy the popular news network.

"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," said RRPR.

RRPR 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 the network’s founders Radhika and Prannoy Roy may individually require independent approval from Income Tax authorities "to deal with any assets, including indirect shareholding in NDTV, arising from sub judice orders".

Adani Group's media arm on August 23 announced that it would purchase a 29.18 percent stake in NDTV, and make an open offer to acquire another 26 per cent of the shares in the company. It had given 48 hours for the transfer of shares.

NDTV’s promoters said last week that the move to acquire indirect stake in the company had happened without their consent or inputs. They also indicated that a SEBI ban till November 2022 prevented them from trading in securities.

Adani contested this stand, saying it was "legally untenable" and that the 29.18 per cent stake in RRPR should be transferred to VCPL. It has tentatively fixed the open offer date for October 17.