NDTV to Raise ₹396.5 Crore via Rights Issue: Debt Repayment, Content Push & What Investors Should Know
NDTV rights issue 2025: Issue price ₹82 per share, record date September 12; raise ₹396.5 crore to repay Adani debt, expand brand & content. Consolidated FY25 loss at ~₹218 crore. Get full financials, peer comparison & risks.
Company Overview
New Delhi Television Limited (NDTV) is a prominent Indian media company, known for its television news broadcasting and digital journalism. It operates channels like NDTV 24×7 (English), NDTV India (Hindi), and has been expanding its digital presence and content offerings. In 2025, NDTV has announced a rights issue to raise capital in order to repay debt, invest in content & brand, and expand its distribution.
NDTV launches a ₹396.50 crore rights issue at ₹82/share to reduce debt, invest in brand & content, facing widening losses in FY25.
Company Financials
Here are the key financials and metrics for NDTV (New Delhi Television Ltd) relevant to the rights issue.
| Metric | FY2023-24 | FY2024-25 |
|---|---|---|
| Consolidated Total Income / Revenue from Operations | ~₹3,700.06 crore | ~₹4,650.31 crore |
| Loss / PAT (Consolidated) | ~-₹213.67 crore | ~-₹2,180.23 crore |
| Other Income | ₹227.05 crore | ₹71.47 crore |
| Total Expenditure | ~₹4,129.70 crore | ~₹6,886.54 crore |
| Face Value per Share | ₹4 each (unchanged) |
Rights Issue Details
- Issue Size: 4,83,53,450 fully paid-up equity shares
- Issue Price: ₹82 per share (face value ₹4 + premium)
- Amount to be Raised: Up to ₹396.50 crore (assuming full subscription)
- Entitlement Ratio: 3 rights shares for every 4 existing equity shares held as on record date (Record Date: September 12, 2025)
- Issue Period: Opens September 22, 2025; Closes October 8, 2025
Use of Proceeds / Objectives
According to NDTV’s official documents, the raised funds will be deployed as follows:
- Debt Repayment: ~₹229 crore to repay borrowings under the inter-corporate deposit from Adani Enterprises.
- Brand, Marketing, Distribution & Content Development: ₹71 crore
- General Corporate Purposes: Remaining amount (≈ ₹94.3 crore)
Peer Comparison
Here is how NDTV compares with other media / news broadcasters:
| Parameter | NDTV | Other Broadcasters / Competitors* |
|---|---|---|
| Price-to-Sales Ratio | ~1.9x | Peer average ~1.2x |
| Profitability | NDTV is making large losses – FY25 loss ~₹2,180 crore | Some peers are profitable or have smaller losses (depending on scale and segment) |
| Revenue Trends | Revenue rising (from ~₹3,700 cr to ~₹4,650 cr) | Peers may have steadier growth with lower expense jumps |
| Expense Ratios / Cost Pressures | Advertising, production, and marketing costs have significantly increased; costs rising faster than revenue in many quarters. | Some peer networks are more diversified or have better control of costs |
* Peers include other Indian news networks / media companies like Zee Media, TV Today Network etc.
Risks & Strategic Challenges
- NDTV has been incurring large losses and its expenses (production, marketing, content, etc.) are rising steeply.
- The media / advertising market is competitive; ad spends can fluctuate with macroeconomic trends.
- Dilution risk: existing shareholders will own a smaller percentage post-issue unless they subscribe to their rights.
- Execution risk: Past entrance into new content formats, distribution expansion etc. Requires capital; delay or cost overruns can worsen financials.
- Sentiment risk: News broadcasting is sensitive to regulatory, political, and public perception factors.
Verdict & What Investors Should Know
Positive Aspects:
- The rights issue gives NDTV a chance to reduce its debt burden significantly, especially the large payable to Adani Enterprises. This will ease interest and liability pressures.
- Funds for marketing & content may help revive viewership and revenue growth.
- Discounted price (relative to market) gives existing shareholders an opportunity to increase holdings.
Considerations:
- Even with capital infusion, NDTV must reverse the high cost growth to become financially stable.
- Turnaround will depend on increased ad revenue, cost control, and possibly new revenue streams (digital, content licensing etc.).
- Rights issue success depends on subscription, investor confidence, and how well NDTV can manage its brand and competition.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
