The battle for NDTV: Two Mauritius Funds can turn the tide in favour of Adani Group
Expert says, Two investors based in Mauritius–Vikasa India EIF I Fund and LTS Investment Fund, hold the key to the victory of Adani Group's takeover bid and open offer for NDTV.
Following the news channel's promoter Prannoy and Radhika Roy, they are the second largest shareholders.
Their funds together hold a 14.17% stake in NDTV. Market experts are highly anticipating that these funds should tender their stake in the open offer. This would end Roy's three-decade-old dominance over NDTV.
A holding in the Adani Group companies dominates almost 90% of LTS Investment crore equity portfolio.
Adani needs a stake higher than Roys
By virtue of convertible warrants, the Adani group currently has control of over 29.18% stake in NDTV and Roy's own 32.27% directly in the news channel.
The Roys continue to fight hard to control NDTV. This means that for Adani Group to set up its dominance over the channel, a stake significantly higher than Roy's will be required.
"If they go by the history of open offers and general market trends, the retail investors are greatly unlikely to tender their offers when they potentially see higher gains as the coming promoter is financially able than the old hands.
Corporate bodies and the general public own almost 25% stake in NDTV aside from Roys, the two tax haven-based funds, and Adani's holdings," experts say.
Therefore even if public shareholders and Roys (with almost 25% stake in NDTV) refuse to fully participate in the open offer, Adani will still be able to achieve dominance with the assistance of Mauritius investors.
Who are Mauritius Funds
Experts say that the two Mauritius funds were put together to acquire the exact amount of stake in NDTV as the one that was once held by Oswal Greentech.
In September 2016, following Oswal's death in Russia, the exact amount of shares held by Oswal Greentech came to be held by another Mauritius registered fund (LTS and Eriska investments.
To date, LTS retained its 9.75% stake while Eriska passed it on to Vikasa.
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