NDTV’s Rs 400-crore rights issue: What board approval means for shareholders

New Delhi: NDTV’s board of directors has approved raising up to Rs 400 crore through a rights issue of equity shares. The approval was granted at its meeting on September 2, 2025. The company will offer new shares to existing shareholders. Each rights issue share will carry a face value of Rs 4, in line with NDTV’s current equity structure. The Rs 400 crore figure is a ceiling, the maximum the company intends to raise, allowing flexibility to fine-tune the offer.

The board has deferred key details to a follow-up meeting on September 8, 2025. These include the issue price, the entitlement ratio, the record date to determine eligible shareholders, and the payment schedule.

NDTV, now part of the Adani Group’s media arm, has said the proceeds will be used to strengthen the balance sheet, reduce debt, invest in branding and content, and expand distribution in India and abroad.

For shareholders, the key takeaway is simple. Fresh capital is coming, and existing shareholders will have the first right to participate. Those who do not subscribe will see their stake diluted.

How retail investors may weigh the offer

On the positive side, subscribing lets small investors buy shares at a discount and maintain their ownership in a company backed by a well-capitalised promoter. On the other hand, NDTV has reported recent losses and news broadcasting remains a tough business, so some investors may hesitate to commit more funds.

Also read: NDTV’s Rights Issue: A lifeline for broadcaster or a power play for Adani?

Adani’s majority ownership cuts both ways in decision-making. Many will see deep pockets and promoter commitment as a lifeline. Others may remain skeptical about the change in ownership and what it could mean for governance and editorial independence. Sentiment on that front can influence whether they put in more money.

What retail investors are likely considering

Trust in promoter versus company outlook:

Gautam Adani’s group now owns about two-thirds of NDTV. That gives the company access to capital and a long-term sponsor, unlike peers that struggled with weak promoters. For some, this is a positive signal. They may subscribe, expecting fresh funds and promoter support to aid a turnaround and digital expansion. Others will worry that, despite a strong backer, the core business remains under pressure and the new money might merely cover losses without a clear path to profitability.

Risk perception:

Adding money to a loss-making company carries risk. If NDTV cannot stem losses or use new capital effectively, the share price may not reward the additional investment. Skipping the offer also has a cost. Ownership gets diluted after new shares are issued, and the market price typically adjusts downward to reflect the discount. In simple terms, there is a penalty for skipping.

For example, if an investor holds 100 shares and skips a 1-for-2 rights offer priced at Rs 100, the value of that holding could drop from about Rs 14,000 to roughly Rs 12,700 after the issue, because of dilution and a lower post-issue price. That potential loss in value is a strong incentive to at least consider subscribing.

Adani ownership sentiment:

Some investors will take comfort in the Adani Group’s record of supporting its businesses and expect NDTV to be backed until profitability returns. Others will be cautious because a dominant promoter can leave small shareholders with limited influence.

If public participation is weak, the promoter stake can rise further, increasing control and, at the extreme, raising the prospect of delisting. Those who think a delisting is possible may prefer to wait rather than invest more now, hoping for a buyout offer later.

These differing views mean the retail response is likely to be mixed.

Typical participation patterns

Historically, full participation by all retail investors is rare when a company is in losses or when its future is uncertain. Many small investors hesitate to add capital in such cases. Promoters, by contrast, almost always subscribe fully to avoid diluting control and to signal confidence.

In NDTV’s case, the Adani Group is expected to take up its entire entitlement and has the capacity to absorb any unsubscribed portion if the terms permit.

The likely outcome is that a portion of the public will subscribe, especially those who are optimistic or want to avoid dilution.