TWISTS AND TURNS

In the convoluted Adani-NDTV saga, a long legal battle between the two companies seems like a real possibility. But don’t be surprised if, along the way, new twists and turns crop up

- KRISHNA GOPALAN

FINALLY, IT HAS come down to one loan of ₹403.85 crore that has resulted in a significant change in shareholding at New Delhi Television Limited or NDTV as it is more commonly known. The broadcasting company, founded in the late 1980s, will need to dig deep to retain control at a time when the process looks challenging.

Promoted by Prannoy Roy and Radhika Roy, the story of NDTV’s debt has many layers and goes back to 2008. A company owned by them, RRPL Holdings, borrowed ₹540 crore from the Gurugram-based conglomerate Indiabulls Financial Services during the middle of that year. A few months later, a loan of ̀₹375 crore was taken from ICICI Bank to repay that loan. That was followed by another borrowing from an entity linked to Reliance Industries— Vishvapradhan Commercial Private Limited (VCPL)—to ensure that ICICI Bank’s loan could be repaid. That VCPLRRPL deal allowed VCPL to indirectly own a 29 per cent stake in NDTV for which RRPL warrants (equivalent to 99 per cent of its equity)were held, though it was an option that was never exercised. In 2012, VCPL was sold to the Mahendra Nahata Group and, as recently as this August, was again acquired by the Adani Group. There is a connection between Nahata and Reliance. In 2010, Nahata’s company, Infotel Broadband, acquired broadline wireless access spectrum across India and, soon after, the company was acquired by Reliance Industries. That was to be the foundation for the launch of Reliance Jio.