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CARE Ratings places NDTV’s bank facilities on ‘credit watch’, shares gallop

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The shares of Adani group’s takeover target satellite channel company New Delhi Television Ltd (NDTV) continued to hit the upward circuit on Monday with the price touching Rs 540.85.

The 52-week low price for the scrip was Rs 72.

Meanwhile, credit rating agency CARE Ratings has placed ratings assigned to NDTV’s bank facilities on credit watch with developing implications following takeover decision by the Adani group.

NDTV, which had postponed its 34th annual general meeting (AGM)to September 27 from the earlier fixed date of September 20, said it has completed the dispatch of notice for the shareholders meeting on September 3, 2022.

Due to change in the date of the AGM, the Register of Members and the Share Transfer Book of the Company will now remain closed September 20-27 (both days inclusive), NDTV had said.

The scrip has been on the upswing since August 23, the day on which the Adani group’s AMG Media Networks announced its subsidiary Vishvapradhan Commercial Private Ltd’s (VCPL) decision to exercise its rights to acquire 99.5 per cent of equity shares of RRPR Holding Private Ltd, the investment company of NDTV promoters – Prannoy Roy and Radhika Roy.

The VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into 99.99 per cent stake in the latter.

The VCPL has exercised its option in part, resulting in acquisition control of RRPR Holding — 1,990,000 equity shares or 99.50 per cent.

RRPR Holding holds 29.18 per cent stake in NDTV that has three national television channels.

This triggered the issue of open offer to acquire shares of NDTV from the public as per SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Placing the credit ratings of NDTV’s bank facilities on credit watch with developing implication, CARE Ratings said it will continue to monitor the developments in this regard and will take a view on the ratings once the exact implications of the acquisition on the credit risk profile of the company are clear.

According to CARE Ratings, the ratings continue to remain constrained by high exposure towards group companies and revenue concentration risk as the company majorly generates revenue from advertisement which in turn exposes the company’s revenue profile to the business cycle of the advertisers.

“The ratings are also constrained on account of uncertainty over ongoing litigations against the company and its promoters especially pertaining to tax demand, hence the impact of the same on operational and financial risk profile of the company is not clear,” CARE Rating said.

According to CARE Ratings, NDTV had a total investment of Rs 335.13 crore in its subsidiaries/joint ventures/associates as on March 31, 2022 (Rs 325.03 crore as on March 31, 2021) as against its tangible net worth of Rs 345.09 crore as on March 31, 2022, majority of which are in NDTV Networks Limited, having an investment of Rs 315.70 crore as on March 31, 2022 (NDTV Networks Limited have a negative net worth of Rs 28.48 crore as on March 31, 2022).

“There are a number of ongoing litigations against the company especially pertaining to tax demand, the outcome of which will be crucial, particularly in the matter pertaining to transaction with Universal Studios International BV (a General Electric company) wherein a tax demand of

Rs 450 crore had been raised against the company for AY 2009-10,” CARE Ratings said.

“Further, the company had also received demand notice from SEBI for alleged non-disclosure of tax demand dated November 22, 2019, against which the company filed an appeal and matter is likely to be listed on September 12, 2022. Company also received show cause notice from the Directorate of Enforcement (ED) for the alleged contraventions under Foreign Exchange Management Act, 1999 (“FEMA”),” the credit rating agency said.

The CARE Ratings said the company also received notice dated August 20, 2018, from SEBI in regard to alleged violation of Clause 36 of erstwhile Listing Agreement for non-disclosure of loan agreements entered into by Prannoy Roy, Radhika Roy and RPRR Holding with VCPL in 2009-10.

“Further, the investigation by CBI is also pending with respect to the FIR registered against the company, promoters and other officials on August 19, 2019, in a case of alleged violation of foreign direct investment rules in one of their companies under section of Indian Penal Code, 1980 and Prevention of Corruption Act, 1988. In addition to this, there are few other investigations also pending w.r.t. income tax demand. Any adverse developments in relation to these ongoing legal cases having a material impact on the operational or financial risk profile of the company shall remain negative from the credit perspective,” CARE Ratings said.

Business

India-EFTA trade pact opens new opportunities for Norwegian investment across key sectors

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India’s strong economic growth trajectory and the implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA) are creating significant opportunities for Norwegian investors, particularly in manufacturing, renewable energy, infrastructure, financial services and the digital economy, according to industry insights.

With GDP growth projected to remain around 6.5 per cent annually through 2030, India is widely expected to become the world’s third-largest economy by the end of the decade, according to EY India report.

Analysts attribute this outlook to strong domestic consumption, rising investments, ongoing infrastructure development and reforms aimed at improving the ease of doing business.

The India-EFTA TEPA, which came into effect in October 2025, is being viewed as a major milestone in India-Norway economic relations.

The agreement seeks to promote trade liberalisation, facilitate investment flows and deepen cooperation in areas such as innovation, sustainability and advanced technologies.

The pact includes investment commitments of $100 billion over 15 years and is expected to support the creation of one million direct jobs in India, aligning with the country’s broader goals of expanding manufacturing capacity and strengthening its position in global value chains.

Industry experts believe the agreement creates a strong framework for Norwegian companies to expand their presence in India by combining Norway’s expertise in technology, sustainability and capital-intensive industries with India’s large market and growth ambitions.

Several sectors have been identified as priority areas for collaboration, including manufacturing, renewable energy, oil and gas, maritime services, seafood processing, information and communication technology (ICT), fintech and financial services. These industries are expected to benefit from increasing bilateral cooperation under the TEPA framework.

The rapid expansion of India’s digital economy and digital payments ecosystem is also creating opportunities for Norwegian companies seeking exposure to one of the world’s largest and fastest-growing consumer markets.

At the same time, India’s policy measures aimed at attracting foreign investment are expected to provide a supportive environment for long-term investors, as per the report.

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Delhi protests put business worth Rs 400 crore at daily risk, exposure may reach Rs 4,000 crore in 10 days: CAIT

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Protests in Delhi could put business transactions worth over Rs 400 crore at risk every day, with the potential exposure reaching Rs 4,000 crore over ten days if disruptions persist, Confederation of All India Traders (CAIT) Secretary General and Chandni Chowk MP Praveen Khandelwal said on Sunday.

Expressing concern over the economic impact of prolonged protests, Khandelwal said disruptions to traffic, transportation, customer movement and market accessibility could significantly affect the capital’s commercial activities, particularly during the crucial festive and wedding season.

He clarified that the figures represent indicative estimates of business activity at risk and not verified actual losses.

According to Khandelwal, Delhi’s estimated average daily business turnover stands at approximately Rs 2,200 crore. Even a 10 per cent decline in business activity could affect transactions worth Rs 220 crore daily, while a 15 per cent decline could put Rs 330 crore at risk. If the disruption reduces business activity by 20 per cent, the amount at risk could rise to Rs 440 crore per day.

Based on these estimates, the cumulative exposure could approach Rs 4,000 crore over ten days if disruptions continue at the higher end of the projected range.

Khandelwal emphasised that while the Constitution guarantees citizens the right to freedom of speech and peaceful assembly, traders must also be able to conduct their businesses and earn their livelihoods without avoidable disruptions.

“Delhi is not merely the national capital; it is one of the country’s most important centres of wholesale distribution, retail trade and commercial activity. Its markets connect manufacturers, distributors, retailers and consumers across India. Any prolonged disruption in Delhi therefore has a cascading impact on supply chains, business transactions and livelihoods far beyond the city,” Khandelwal said.

“The right to protest and the right to trade are both integral to a functioning democracy. Protecting one should not mean disregarding the other. The larger public interest demands a responsible approach in which democratic expression, the rule of law, economic activity and the livelihood of millions of people are all duly respected,” Khandelwal noted.

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TN announces Rs 2 per kg incentive for cooperative ration shop onion sales

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Salespersons at ration shops run by cooperative societies will receive an incentive of Rs 2 for every kilogram of onions sold under an initiative aimed at controlling retail prices and ensuring access to quality produce at reasonable rates.

The incentive was announced in a procedural order issued by Registrar of Cooperative Societies, Latha. It recognises the additional responsibilities undertaken by salespersons handling onion distribution alongside their regular ration shop duties.

According to the order, onions were procured in three phases from the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF). The procurement was undertaken to help check rising onion prices in the open market. The onions are being sold to the public through ration shops operated by cooperative societies.

The arrangement is intended to make quality onions available at fair prices while using the existing cooperative distribution network to reach consumers.

Under the order, the incentive payable to each salesperson will depend on the quantity of onions sold. The prescribed rate is Rs 2 per kilogram, linking payment directly to the volume handled through sales at the participating shops.

The Registrar’s order lists several additional tasks associated with the initiative. These include receiving onion consignments, storing the produce, sorting it, weighing quantities for customers, conducting sales and maintaining the related sales accounts. These responsibilities involve work beyond the routine distribution of ration commodities.

The incentive is intended to encourage salespersons to undertake the additional duties required to carry out onion sales through cooperative outlets. The amount due to eligible salespersons will be credited directly to their bank accounts through the Electronic Clearing Service (ECS), according to the order.

Payments will therefore be made through bank transfers based on the quantity sold. The measure combines consumer relief with an incentive for the staff responsible for implementing the sales programme.

While the procurement and distribution arrangement seeks to contain the impact of higher market prices, the additional payment acknowledges the work involved at the retail level. The order specifies a uniform incentive rate for onion sales conducted through the participating cooperative ration shops.

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