Winning Bizness Desk
Mumbai. The deal of Adani Group buying a stake in NDTV seems has been cleared. In fact, Adani Group company VCPL has informed media company NDTV that RRPR Holding Ltd., the promoter arm of NDTV. (RRPR Holding Ltd) does not require approval from the Income Tax Department to convert debt warrants into equity shares.
No such restriction is applicable
NDTV has said in the information given to the stock exchanges that RRPR Holding and the company have received a letter from Vishwapradhan Commercial Private Limited (VCPL) informing that VCPL has filed a complaint with the Income Tax Department on the issue of conversion of debt warrants into equity shares. According to VCPL, the Income Tax Department in its reply has said that no such restriction is applicable in converting the warrant into equity. According to this, "As per the reply given by the Additional Commissioner, Income Tax Department, there is no restriction on the option to convert the warrant into 99.50 per cent equity share of RRPR."
VCPL also informed SEBI
VCPL has also informed the market regulator SEBI about this correspondence with the Income Tax Department by writing a letter. RRPR Holding had earlier this month told Adani Group company VCPL that its stake in NDTV has been temporarily withheld by the Income Tax Department, hence transfer of the stake required the approval of the Income Tax Department. VCPL along with two other Adani Group companies has tried to acquire NDTV. Rejecting this argument of RRPR Holding, the Adani Group has asked RRPR Holding to convert the warrant into equity shares, terming it as a 'false' and 'misleading' statement.