Tata Sons to sell 2.72% in Tata Tel Maharashtra

The sale, which represents 5.16 crore shares, will commence on17 May, and will continue through trading hours of the day

Cyrus Mistry-controlled Tata Sons today said that they plan to sell as much as 2.72% stake in Tata Teleservices Maharashtra. This will be done through an offer-for-sale by the promoters.  

The sale, which represents 5.16 crore shares, will commence on17 May, and will continue through the trading hours of the day. The seller will submit the floor price to the Bombay Stock Exchange in a sealed envelope before the trading hours. The floor price shall be disseminated by the exchange after trading hours post the closure of the sale, the company said in a communication to the stock exchanges.

This sale, the company says, will happen exclusively through the seller's broker, Tata Securities. Prior to the sale, Tata Sons holds 20.72% stake in the company as on March 2013.

The other shareholders which form the promoter and promoter group are Tata Teleservices which holds 37.6%, Tata Power holds 7.2%. NTT Docomo, the Japanese partner of Tata Teleservices, holds 12% stake. Together, the promoter and promoter group holds 77.7% stake in the company.

Tata Teleservices Mahasrashtra, which houses Mumbai, Maharashtra and Goa circles, is only listed entity of Tata Teleservices Limited. The company posted a loss of Rs 115 crore for the quarter ended, which truncated from Rs 123 crore loss in the same quarter, last year.

Its revenues grew by six% to Rs 702 crore for the quarter, as compared to Rs 662 crore in the corresponding quarter, last year. For the year ended 2012-13, the dual-technology operator's revenues increased by seven%.

The stock of Tata Teleservices Maharashtra traded flat today as it went down by 0.3% to Rs 8.9, as per Bombay Stock Exchange data.