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Home » #AdaniBuysNDTV: What is ‘RRPR holdings’ which Adani group acquired?

#AdaniBuysNDTV: What is ‘RRPR holdings’ which Adani group acquired?

RRPR HOLDINGS

RRPR Holdings Pvt Limited is a promoter group company of NDTV and holds a 29.18% stake in New Delhi Television (NDTV). The company is a category non-government organisation and was started by Pranoy Roy(PR) and Radhika Roy (RR). Both the founder also serve as directors of the promoter company.

According to the Ministry of Corporate Affairs, the company was started on 19 August 2005, and the registered office address is E-186, BASEMENT, GREATER KAILASH- I, NEW DELHI DL 110048.

All the information is available on the Ministry of Corporate Affairs website.

Loan Trap

NDTV has a long history of loans which the promoters of the company have taken from time to time. In 2009, to repay the loan to ICICI, NDTV took another loan from Vishvapradhan Commercial Private Limited, or VCPL. According to Caravan magazine, the ‘terms of the loan were extraordinary’. The Roys had to transfer a significant chunk of their personal stock to RRPR holdings. The transfer increased the shareholding of the company from 15% to 26%. While Roys remained director on paper, the effective decision making to handed over to VCPL.

Also Read:  #AdaniBuysNDTV : What is an Open Offer?

Later, in 2010, Roys sold another 3.18% of stocks to RRPR making it 29.18%.

The article, in Caravan magazine, also said in 2010, Roys’ individual holding was less than that of VCPL. And, the extraordinary conditions gave VCPL the right to convert the loan into 99.99 % of RRPR’s equity. As of June 30, NDTV’s Prannoy Roy and Radhika Roy directly held 15.94% and 16.32 % respectively, in the company.

Apparently, the money which NDTV owes to VCPL had come from the Reliance group of industries. Although, the Reliance group of industries denies it completely. 

Also Read

Adani buys NDTV, But Why?

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