NDTV to repay Adani debt, spend Rs 71 crore on brand push with rights issue

New Delhi: NDTV (New Delhi Television Limited) is planning to use most of the Rs 396.5 crore it plans to raise through its rights issue to repay debt owed to Adani Enterprises, while also setting aside Rs 71 crore for marketing, brand building, distribution expansion and content development. 

The remaining Rs 94.3 crore will be deployed for general corporate purposes, as per the company’s declarations. 

Debt repayment

The company, in its Letter of Offer, has disclosed that Rs 229 crore from the net proceeds will go towards repayment of borrowings. NDTV had availed an inter-corporate deposit facility of up to Rs 300 crore from Adani Enterprises in January 2024, carrying an interest rate of 8.5 per cent per annum and maturing on March 31, 2029. 

As of August 31, 2025, it owed Rs 251.9 crore under this facility. The repayment from the rights issue proceeds will partly cover this liability, which is the single largest allocation of the funds being raised.

The rights issue comprises up to 4.83 crore equity shares with a face value of Rs 4 each, offered at Rs 82 per share, including a premium of Rs 78. Assuming full subscription, the gross proceeds will be Rs 396.5 crore. 

After deducting issue-related expenses of Rs 2.19 crore, NDTV expects net proceeds of Rs 394.3 crore. The board of directors approved the planned utilisation of funds on September 2, 2025, and the entire amount is scheduled to be deployed in the financial year ending March 31, 2026.

Marketing and branding

The second largest deployment of funds will be for strategic initiatives worth Rs 71 crore. This will include marketing and brand-building campaigns, distribution expansion and the creation of intellectual properties.

The company has said that the marketing allocation will be used to strengthen the visibility of its channels and reinforce brand positioning across national and regional markets. 

It cited past campaigns such as NDTV Greenathon, budget session promotions and election coverage activations as examples of its marketing approach. The broadcaster has also worked with consultancy firms on campaign planning and social media marketing and entered barter agreements with other media and consumer companies to extend reach.

NDTV’s distribution initiatives will focus on expanding domestic penetration and engaging the Indian diaspora in international markets, particularly in the United States, United Kingdom and United Arab Emirates. 

The broadcaster already has placement agreements with operators and distributors to boost visibility of its six television channels, including NDTV 24x7, NDTV India, NDTV Profit and its newer regional offerings such as NDTV Madhya Pradesh and Chhattisgarh, NDTV Rajasthan and NDTV Marathi.

Earlier this year, in July, NDTV had surrendered the permission granted by the Ministry of Information & Broadcasting for uplinking and downlinking of the proposed news and current affairs channel, ‘NDTV Gujarati’.

In addition, NDTV has said that it will invest in developing new intellectual properties, adding to its portfolio of 284 registered trademarks and programme formats such as Jai Jawan, Banega Swasth India, NDTV Indian of the Year and Creator’s Manch. The company intends to create new programming formats and digital projects with the fresh funds.

‘General purposes’

The remaining Rs 94.3 crore from the proceeds will go towards general corporate purposes. This will include working capital needs, business development, operational expenses such as salaries and administrative costs, and potential growth opportunities such as acquisitions. 

NDTV has clarified that in accordance with SEBI regulations, the allocation for general corporate use will not exceed 25 per cent of the gross proceeds.

The entire Rs. 394.3 crore net proceeds are scheduled to be deployed within the financial year ending March 31, 2026. The company has noted that the schedule may be “subject to change depending on market conditions, business requirements and regulatory factors.”