Shares of NDTV on Wednesday surged 20% to hit its upper circuit limit at Rs 39 after Sebi ordered Vishvapradhan Commercial to make an open offer.
Regulator Sebi on Tuesday ordered a little-known entity, Vishvapradhan Commercial, to make an open offer for NDTV for indirectly acquiring control of up to 52% stake through a convertible loan of Rs 350 crore in 2009 "sourced" from a subsidiary of Reliance Industries.
The stock of the company opened on a positive note at Rs 36, then soared further to Rs 39, up 20% from its previous closing price on BSE.
Similar movement was seen on NSE, where the stock opened at Rs 36.10, then gained further ground to touch Rs 38.80, up 19.94% over its last close.
Market analysts said the Bombay High Court order also acted as a trigger for the stock.
The Bombay High Court on Tuesday directed the Reserve Bank of India to consider the compounding applications filed by NDTV in a case of alleged violation of Foreign Exchange Management Act (FEMA).
A bench of Justices S C Dharmadhikari and Bharati Dangre set aside objections raised to the compounding proceedings by the Enforcement Directorate (ED), which had earlier flagged the alleged FEMA violations and issued show-cause notices to NDTV in 2015.
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