SpiceJet co-founder Ajay Singh set to take control of NDTV

The owner and co-founder of SpiceJet, Ajay Singh, is set to take control of NDTV as he has bought a majority stake in the news channel. The deal was finalized at a sum of around Rs 600 crore.

Singh was part of the core advertising team of the Bharatiya Janata Party’s poll campaign ahead of the 2014 Lok Sabha elections. He is believed to be the mind behind the BJP’s “Abki Baar, Modi Sarkar” campaign slogan.

On June 5, the CBI conducted searches at the residences of the Roys. Calling the raids a “blatant attack on the freedom of the press,” NDTV, in a statement, said that the CBI had filed its FIR based on a “shoddy complaint” by a “disgruntled” former NDTV consultant who has not obtained a “single order from the courts.”

According to the source, Ajay Singh, chairman and managing director for SpiceJet, will have the controlling stake in NDTV of around 40 percent and the promoters Prannoy Roy and Radhika Roy will hold around 20 percent in the company.

The Gurgaon-company VCPL, which is now under the SEBI scrutiny for control of NDTV, had given the media firm an interest-free loan worth Rs 350 crore to the Roys and RRPR Holdings — a holding company of NDTV, as was reported by journalist Sucheta Dalal’s Moneylife.

The Roys reportedly used this money to repay a loan from ICICI Bank in full. In exchange, the Roys were to issue convertible warrants to VCPL which had the option to convert those debentures into the equity shares amounting to 99.99% equity share capital of RRPR Holdings, which in turn owns 29.18% stake in NDTV Ltd.