NDTV RI review - (Not Rated)

•    The company is engaged as one of the leading entities in news broadcasting and digital journalism in India.
•    Recently it was taken over by Adani group, and is on expansion spree.
•    Though it marked surge in its top line, its bottom line went deeper in red.
•    The counter is attracting informed circles which keeps it in a volatile mode.
•    Well-informed/ risk savvy/ cash surplus investors may park moderate funds for medium to long term.

ABOUT COMPANY:
New Delhi Television Ltd. (NDTV) is one of the leading entities in news broadcasting and digital journalism in India. Following the majority stake acquisition in 2022, it is now a part of the Adani portfolio, which is among India’s top business houses with an integrated energy and infrastructure platform in India and a long track record of successfully executing large-scale projects. Adani Portfolio is present across four core industry sectors – energy and utility, transportation and logistics, primary industry and other specialty businesses.

NDTV engaged in news broadcasting, digital journalism, and the production of content across multiple platforms. As on the date of this Letter of Offer, its broadcasting network comprises of six television channels, including national channels, namely, NDTV 24x7 (English), NDTV India (Hindi), and NDTV Profit (Business), alongside newly launched regional channels such as NDTV Madhya Pradesh & Chhattisgarh, NDTV Rajasthan, and NDTV Marathi. It has established a significant digital footprint, with popular news portals like ndtv.com and ndtv.in, among others, having approximately 156 million unique average monthly visitors across all websites, as on March 31, 2025. The company also built a robust social media presence, with an audience of over 88 million across all social media platforms, as on March 31, 2025.

Its content covers breaking news, in-depth analyses, exclusive interviews, and special broadcasts on politics, finance, and current affairs, which has positioned the Company as one of India’s most trusted networks. With a global reach spanning 65 countries, as on June 30, 2025, with dedicated news feeds in the USA, UK and UAE and a network of international platforms, it effectively caters to the diaspora as well as discerning news consumers who are focused on India and Indian markets. Recently, the Company has expanded to have deeper touch points by re-launching business channel, i.e., NDTV Profit for national audiences. Moreover, with the launch of NDTV Madhya Pradesh & Chhattisgarh, NDTV Rajasthan and NDTV Marathi, it has brought local news within the credibility of the brand.

NDTV operates as a division of AMG Media Networks Limited, an entity within the Adani portfolio. Adani portfolio which is among India’s top business houses with an integrated energy and infrastructure platform in India and a long track record of successfully executing large scale projects. Adani Portfolio is present across four core industry sectors – energy and utility, transportation and logistics, primary industry and other specialty businesses. As part of the Adani portfolio, it leverages its extensive presence across various sectors to access world-class infrastructure, global talent, and operational synergies. This strategic association positions it to expand as a dynamic, multi-platform global news organization with international reach.

The Company continues to adopt a digital-first strategy, prioritizing mobile, connected television, and data-driven platforms to optimize audience engagement and advertising effectiveness. Its digital-first approach focuses on leveraging emerging technologies, including artificial intelligence and augmented reality, to deliver personalized, high-impact content and campaigns. As of March 31, 2025, it had 796 permanent employees of which 531 were editorial personnel across all of its channels. Further, as of June 30, 2025, it operates five fully functional studios in Delhi, each serving a specific channel, i.e., NDTV 24x7, NDTV India, NDTV Madhya Pradesh & Chhattisgarh and NDTV Rajasthan. Additionally, the fifth studio, functions as a backup for any channels when necessary and is also utilized for recording audience-based shows. The Company also has three functional studios in Mumbai, serving channels such as NDTV Profit and NDTV Marathi.

As of the date of this Letter of Offer it had 284 trademarks registered in India including for logos for channels NDTV India, NDTV 24x7, NDTV Madhya Pradesh & Chhattisgarh, NDTV Rajasthan and NDTV Marathi, and certain titles of programs such as ‘The World This Week’, ‘The 9’O Clock News’, ‘Baat India Ki’, ‘Good Morning India, Kaam Ki Baat’, ‘Khabro Ki Khabar’, ‘Riverthon’ and ‘Greenathon’.

Litigations worth Rs. 2470.41 cr. against the company and Rs. 851.40 cr. against subsidiaries raises major concern. As of March 31, 2025, it also had contingent liabilities which are not provided in accounts amounting to Rs. 1326.59 cr. 

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 48353450 equity shares of Rs. 4 each at a fixed price of Rs. 82 per share to mobilize Rs. 396.50 cr. The RI opens for subscription on September 22, 2025, and will close on October 08, 2025. The company is offering RI in the ratio of 3 for 4 to its eligible stakeholders as of the record date of September 12, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 2.19 cr. for this RI process, and from the net proceeds, it will utilize Rs. 71.00 cr. for strategic investment towards distribution and market expansion, marketing and brand building, creation and development of intellectual properties, Rs. 229.00 cr. for repayment/prepayment of certain borrowings, and Rs. 94.31 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and KFin Technologies Ltd. is the registrar to the issue. SBI Capital Markets Ltd. is the advisor to the issue.

Post-RI, company’s current paid-up equity capital of Rs. 25.79 cr. will stand enhanced to Rs. 45.13 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 925.16 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ - (loss), of Rs. 392.71 cr. / Rs. – (21.37) cr. (FY24), and Rs. 472.18 cr. / Rs. – (218.02) cr. It marked rising top line, but it also posted boosting losses for the said periods. Its NAV was down from Rs. 40.06 of FY24 to Rs. 9.11 for FY25.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532529 (FV Rs. 4).
The scrip last closed on cum-right basis at Rs. 157.90 on September 11, 2025, and opened on an ex-right basis at Rs. 119.10 on September 12, 2025. Since then, it has marked a high/low of Rs. 133.00 / Rs. 119.10. The scrip last closed at Rs. 123.40 as of September 18, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 157.21 / Rs. 79.48. Based on its last traded price of Rs. 123.40, the RI is at a discount of around 33.55%.

The promoters’ holding has been constant at 64.71% for the last three Quarters ended June 2025.  The counter is well managed above the RI price to tempt investors.