India's Adani Group, owned by billionaire Gautam Adani, to further strengthen its position in the media industry, has increased its stake in a Media Agency, ‘ IANS India Pvt Ltd’. AMG Media Networks, Adani Enterprises' Media wing, subscribed to fresh shares issued by the news agency worth Rs 5 crore ($601,801).
AMG Media Networks has raised its stake in IANS shares with voting rights to 76%, and an impressive 99.26% without voting rights, up from the initial 50.5% acquired last month for each category. The cash outgo for this additional acquisition is confirmed to be Rs 5 crore.
Adani Enterprises in a regulatory filing said, "In continuation to our earlier intimation dated December 15, 2023, we would like to inform that AMG Media Networks Ltd (AMNL), a wholly-owned subsidiary of the company has increased its stake in IANS India Private Limited, by subscribing to fresh shares issued by IANS."
The board of IANS approved the allotment of these additional shares during its meeting on January 16, 2024, marking another significant step in Adani's media expansion. The acquisition is a part of a strategic move in the interest of Adani Media Networks Ltd (AMNL) to solidify its position in the media landscape.
IANS, a subsidiary of AMNL, has an authorized share capital of Rs 11 crore and reported a revenue of Rs 11.86 crore in FY23. Adani's foray into media is managed through AMNL, the vehicle responsible for previous acquisitions.
Adani had initially entered the IANS fold by acquiring a 50.5% stake for Rs 5,10,000 in December. Adani entered the media sector last year with the acquisition of Quintillion Business Media and with notable acquisition of a 65% stake in news broadcaster NDTV in December 2022.
Adani Group's media assets, including NDTV and NDTV Profit, will face competition from rivals such as Reliance Industries-owned broadcaster News18 and the business news site Moneycontrol.
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