Why NDTV Share Price is Falling

Shares of NDTV have been in an uptrend since July 2022 on the back of an improved financial performance. The company's acquisition by the Adani group has also given a boost to the stock.

As a result, in 2022, shares of the company are up more than 180%.

However, in the last month, the winds have changed for NDTV share price. In the last month, the company's share price is down 3%.

In the last five trading sessions, the share price has plunged by 18%.

So, what changed for the company? Let's find out...

Adani Group fails to woo investors in open offer

In August 2022, shares of NDTV were in focus after Adani Enterprises - Sensex 30 company, acquired 29.2% of NDTV and made an offer to acquire another 26% of shares.

However, since the first acquisition by Adani was allegedly a hostile takeover, there was a lot of issues around the legality of the open offer.

After a lot of dilemma and deliberation, the market regulator finally approved Adani group's open offer to acquire a further 26% of NDTV.

It was an important win for the Adani group for acquiring control over the media house.

Adani group - one of the leaders of the rally in nifty 50 stocks list in 2022, wasted no time and the revised offer was open for subscription from 22 November. The offer was to buy NDTV shares at Rs 294 per share, a price much lower than the current market price.

The offer closed on 5 December. On the day of the closing of the offer, the open offer garnered 31.8%. Out of 16.7 million (m) shares available for the open offer, only 5.3 m shares were sold to the Adani group.

Hence, considering the 29.2% stake obtained earlier and the stake obtained by buying the shares, the total stake of Adani stands at 37.4% in the company.

Adani's total stake in the company is not greater than the combined stake of the company's promoters.

It would be safe to say that Adani failed to woo over investors. Many investors who didn't tender might have found the offer price unattractive.

NDTV's share price had seen a sharp rise in the last days of the open offer. However, as soon as the offer closed, the share price fell.

In just one trading session share price fell by around 5% on 5 December. Post that the share price has been falling continuously.

Investment Takeaway

The Adani group has been spreading its wings in various fields, entertainment being the latest one.

Earlier in March, Adani had acquired a 49% stake in Raghav Bahl-curated digital business news platform Quintillion Business Media for an undisclosed sum.

In April 2022, it announced the incorporation of its subsidiary AMG Media Networks which it used to takeover NDTV.

Now, after the offer, it has obtained a major stake in NDTV. This change in controlling stake might bring in a lot of changes for the media company.

Will these changes be a boon or bane for investors?

Only time will tell.

About NDTV

New Delhi Television (NDTV) is an Indian news media company focusing on broadcast and digital news publications.

The company is considered to be a legacy brand that pioneered independent news broadcasting in India and is credited for launching the first 24x7 news channel and the first lifestyle channel in the country.

It owns and operates the broadcast news channels of NDTV India and NDTV 24x7. The two channels of the company have received 32 Ramnath Goenka Excellence in Journalism Awards.

To know more about NDTV, refer the company's fact sheet and latest quarterly results.

You can also compare NDTV with its peers:

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