Adani Group has been one of the most famous conglomerates in recent times. This has been because of the fact that they are progressing majorly into multiple takeover deals and projects. The company has been witnessing great runs in multiple companies like Adani Green and Adani Enterprises. The company has been dreaming of a Trillion dollar valuation and for the same it is keen to invest more than 150 billion dollars into multiple businesses like airports, energy, healthcare etc. However the company has been in the news recently given its NDTV Deal and the biggest slum project of Asia. For other information on Adani Group visit the link.
NDTV Deal
Adani group through its AGM Media company recently made an investment in Quintillion before moving forward to the NDTV deal. This was the first move which indicated Adani’s entrance into the news segment. The company then bought VCPL which had convertible warrants of NDTV with it. The NDTV promoters took a loan for their business from VCPL with an exchange of warrants that could be immediately converted into shares at any point of time. The Adani Group after taking over VCPL under AGM Media converted the same and became a shareholder for 29.18% of shares in NDTV.
Soon after this the promoters revolted against Adani Group and filed a complaint to SEBI. However, the Adani group put forward an open offer for another 26% shares in the NDTV company. The offer is made at 294 Rs per share. SEBI soon gave clearance to Adani Group for the takeover and this is when the group initiated its open offer proceedings and the same is open till 5th December.
Promoters and Key Persons at NDTV
After the nod and Adani’s open offer the promoters of NDTV Pranay Roy and Radhika Roy quit their positions of Board of Directors and three new people joined the same. They are Senthil Sinniah Chengalvarayan, Sanjay Pugalia and Sudipta Bhattacharya. Hence the board of directors suffered a major change in the company after the takeover began. The key speaker at NDTV Ravish Kumar also quit the company after the promoters resigned from the same. The contribution made by Ravish Kumar in the growth of NDTV was phenomenal and hence it would be interesting to notice what would be the future plan of Adani Group with its entry into the News segment. However Pranay ROy still holds 32% of the company’s shares in personal capacity.
Dharavi Project
Asia’s biggest slum located in Maharashtra – “Dharavi ”, has been under a redevelopment plan for a long time. The same has been held in paperwork due to the change of government and disputes going on at an upper level. However recently the Adani Group’s bid for redevelopment of the same has been passed. The companies in the race were DLF and others. The deal of DLF was amounted to 2025 Crore Rs. However the Adani Group’s bid was 5069 Crore Rs and hence it was accepted in its comparison. Another company named Naman Group Limited also submitted a bid but it was not accepted due to some technical errors in the same.
The project consists of 58000 families and 12000 commercial establishments. This is one of the biggest slum projects in the world and it would be undertaken by the third richest person in the world. The bid is an initial investment in the 20000 Crore Rs project and an SPV would be formed for the same. 20% of the initial investment is to be given before signing the project and another 20% on submission of a master plan.
The project bids were needed to be above 1600 crore Rs and Adani Group being the lead partner is ready to bring in the same. Also apart from 400 Crore of equity any investment required forward will be given by the lead partner i.e. Adani Group and it will be in the form of convertible debentures or preference shares.
This is the 4th attempt of the Maharashtra government to rebuild the biggest slum of Asia. As per the rough plan it will be a development approach of residential, commercial and industrial sector with a floor space index over 4.
Kerala Port
Adani group has been trying to build a port in Kerala which would be of extreme usage given its connection of domestic and international fleet. The port is built by Adani Ports and SEZ. The project cost is estimated at 900 Million dollars and the locals have been complaining to the government that it is causing coastal erosion and destroying their livelihood.
The Adani group is denying these allegations but recently a mob attack was made in the area and the locals denied any work to be undertaken by the company. The government and the high court have urged the locals to support the company and its work. However this has been a major headache for the conglomerate given the time extension the project is demanding due to such actions.
