Shares of NDTV continued gaining momentum for the second straight session and surged 5% to hit their upper circuit limit on Thursday after the Adani group launched a bid to take over the media company. The smallcap stock has been rising for the last three days and climbed more than 13% during the same period. The counter has given stellar returns to its investors by rallying 442% in the past one year and 255% in the current calendar year 2022.

On Thursday, NDTV share price opened higher and rose 5% to ₹403.70 — its highest trading permissible limit for the day as well as fresh 52-week high — on the BSE. The stock had hit its 5% upper circuit in the previous session after billionaire Gautam Adani launched a hostile takeover of NDTV by acquiring a 29.18% stake in the news and broadcast company followed by an offer to buy another 26% controlling stake.

However, Adani Group’s open offer to acquire a majority stake in NDTV has been delayed as the country’s second-largest conglomerate needs approval from market regulator Securities and Exchange Board of India (SEBI) to complete the transaction as its founders and promoters Prannoy Roy and Radhika Roy are barred from buying or selling shares. In an order dated November 27, 2020, SEBI has barred Prannoy Roy and Radhika Roy from accessing the securities market for a period of 2 years, which expires on November 26, 2022.

“In view of directions in force vide order dated November 27, 2020, of the Securities and Exchange Board of India (SEBI), restraining the Founder-Promoters Dr. Prannoy Roy and Mrs. Radhika Roy from accessing the securities market, and further prohibiting buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of 2 years, which expires on November 26, 2022, unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed Acquirer to secure 99.5% interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18% of the issued share capital of the Target Company held by the Promoter Group vehicle,” NDTV says in a exchange filing on August 25.

The development came a day after Adani Enterprises Ltd (AEL) on Tuesday announced that it would buy a 29.18% indirect stake in NDTV through Vishvapradhan Commercial Pvt Ltd (VCPL), a wholly owned subsidiary of AMG Media Network Ltd (AMNL), the media arm of Adani group. Besides, the company also plans to buy an additional 26% stake in the media firm through an open offer, taking the total shareholding in NDTV to 55.18% upon successful completion of the scheme. The company proposed to acquire shares at a floor price of ₹294 per share for a total consideration of up to ₹492.8 crore payable in cash.

However, NDTV has raised concerns over the acquisition, saying that the Adani group acquired the news network without any discussion with the company or its founder-promoters Radhika and Prannoy Roy. As per the latest shareholding, Prannoy Roy owns 15.94% in NDTV, while Radhika Roy’s holding is 16.32%, taking their total to 32.26%. They own additional 29.18% shares in the company through RRPR Holdings – abbreviated for Radhika Roy and Pranay Roy.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.