India's NDTV jumps after Asia's richest man moves to take stake

Agencies | Bengaluru                                                                          

The Daily Tribune – www.newsofbahrain.com

Shares in India's NDTV Ltd (NDTV.NS) jumped the maximum permitted 5% to a 14-year high yesterday, after billionaire Gautam Adani's conglomerate moved to take a near 30% stake in the media group that could eventually lead to it taking control.

New Delhi Television's (NDTV) shares surged far beyond the price Adani Group said it would pay in a subsequent mandatory open offer that could take its stake over 55%.

Some analysts said investors were hoping Asia's richest man would put money into the struggling network.

"All TV channels have been suffering financially, and NDTV suffers a bit more because their rivals are aggressive marketers," said N. Chandramouli, CEO of TRA Research.

"Markets may be reacting because the sentiment is that someone with money is coming in," he added. NDTV's rivals include Times Group's Times Now and Network18's (NEFI .NS) CNN-News18, controlled by Indian billionaire Mukesh Ambani.

Regarded as one of the few media groups that often takes a critical view of the ruling administration's policies, NDTV said late Tuesday that Adani Group's move had come "without any input from, conversation with, or consent of the NDTV founders" Prannoy Roy and Radhika Roy.