The Income Tax department has clarified that there is no restriction on the conversion of warrants into NDTV shares by RRPR Holdings in favour of Adani-owned Vishvapradhan Commercial Private Limited (VCPL).
In an exchange filing, NDTV noted that the company, along with Prannoy and Radhika Roy’s holding company RRPR, received a notification from VCPL, regarding the clarification issued by the income tax authority.
Not much room left
“The prohibition under the above-mentioned orders u/s 281B during the period of their operation is on M/s. RRPR Holding Private Limited for selling or transfer of its shareholding in M/s. New Delhi Television Limited and from creating/causing any charge thereon only, irrespective of the shareholding pattern of M/s. RRPR Holding Private Limited exercises control thereon and not on the issuance of shares of M/s. RRPR Holding Private Limited,” the letter dated September 7, stated.
Earlier, NDTV and the Roys had said they required permission from market regulator SEBI to bring closure of the deal and give their shares to the Adani group-linked company. But when SEBI officials were of the view that no such permission was required, the Roys told the exchanges that they would require a nod from the I-T department. Now, with this development, the Roys are not left with many options but to honour their agreement obligations and tender a large chunk of their shares in NDTV to VCPL.
Open offer
BusinessLine had previously reported that VCPL had, on September 9, notified the bourses that no such permission from income tax authorities will be required. Effectively, SEBI will have to allow the open offer to commence once the Roys tender their shares to the Adani Group. Adani has set the open offer date for October 17.