Tata Sons to divest 1% stake in TTML by June 4

Tata Teleservices (Maharashtra) Ltd (TTML) today said its promoter Tata Sons will sell one% stake, comprising 1.89 crore shares, in the company by June 4.

Last week, Tata Sons had cancelled the offer for sale of shares to divest 2.72% stake in the company that was aimed at meeting the minimum public shareholding norms.

"Tata Sons Limited who is a promoter of the company proposes to disinvest its shareholding... Total number of shares proposed to be disinvested is 1,89,71,968 equity shares of the company (representing 1% of the total equity shares of the company," TTML said in a filing to the BSE.

The filing added disinvestment is proposed to be completed by June 4, 2013.

The firm had announced that Tata Sons will sell 51,623,679 shares representing 2.72% of the equity capital of the company on May 17.

As per the BSE, promoters currently hold 77.72% stake in the company while 22.28% is held by public.

The Securities and Exchange Board of India (SEBI) norms require all listed private sector companies to have at least 25% public shareholding by June 30.

The SEBI has recently relaxed norms for TTML's offer for sale of shares by promoters.

The SEBI has communicated to the company about the relaxations which include "two successive offers (for sale of shares) with a gap of minimum three days" while relaxing the restrictions with respect to 12-week cool-off period.

The regulator has also relaxed the maximum allocation limit of 25% of the size of the offer for sale to a single investor.

Shares of TTML closed at Rs 9.70 apiece, up 19.75% on the BSE.