You are here: Home » Markets » News
Business Standard

TTML zooms over 100% in 12 trading days post deal with Bharti Airtel

The stock locked in upper circuit of 5% at Rs 8.22, zoom 104% from Rs 4.02 on October 11, 2017 against 4.5% rise in Sensex.

SI Reporter  |  Mumbai 

TTML zoom over 100% in 12 trading day post deal with Bharti Airtel
Tata Teleservices (Maharashtra) Limited (TTML) is locked in upper circuit of 5% at Rs 8.22, extending its eleven-session long rally on the BSE, after the company announced it has entered into an agreement with Bharti Airtel to merge its and its group company Tata Teleservices (TTSL)'s consumer mobile business (CMB) with that of Airtel’s.

Bharti Airtel and Tata on October 12 said that the acquisition is subject to requisite regulatory approvals. As part of the Agreement, Bharti Airtel will absorb Tata CMB’s operations across the country in nineteen circles (17 under TTSL and 2 under TTML).

Since then, the stock TTML zoomed 104% from Rs 4.02 on October 11, 2017, as compared to 4.5% rise in the benchmark S&P BSE Sensex.  Till 11:03 AM; a combined 1.82 million shares changed hands and there were pending buy orders for 3.15 million shares on the NSE and BSE.

TTML was established in 1995 as Hughes Ispat and was acquired by the Tata group in 2002. TTSL and TTML together (Tata Tele) marked foray of the Tata group into the telecom sector. The Tata group has operations in more than 80 countries across six continents and exports products and services to 85 countries.

“The board of Tata Sons has approved an investment of Rs 14,000 crore in TTSL, either in the form of equity or optionally compulsory convertible preference shares or any other equity linked instrument. The proceeds will be used for debt repayment of TTSL and TTML, which would reduce the interest cost. The rating centrally factors in continued support from the Tata Group,” CARE Ratings said in a statement while intimation of revision in ratings on the bank facilities of the TTML.

“The company being a part of the Tata Group continues to derive strength from strong parentage. The promoters Tata Sons continues to remain committed to the company and is expected to fund its required cash flow shortfall,” the rating agency ICRA said in a release.

With the transfer of loss making CMB, the group’s cash flows from operations are expected to witness improvement going forward given that the other business segments are expected to generate relatively better profitability than CMB, it added.

First Published: Mon, October 30 2017. 11:06 IST