Tata Tele Maharashtra shareholders approve fund raising of up to Rs 5000 cr

Shareholders of Tata Teleservices Maharashtra have approved raising of up to Rs 5,000 crore by issuing preferential shares to parent firm and non-convertible debentures on private placement basis, according to a regulatory filing.

Tata Teleservices Maharashtra (TTML) had sought approval for raising up to Rs 2,500 crore by way of issuing non-cumulative redeemable preference shares- series 6 on preferential basis to its parent firm Tata Teleservices Limited (TTSL) and/or Tata Sons Private Limited and/or to Panatone Finvest Limited in one or more tranches.

The company also sought shareholders nod to issue non-convertible debentures of up to Rs 2,500 crore on private placement basis.

Both the special resolutions of the company were passed with over 99.99 shareholder's voting in their favour, according to the regulatory filings made by the company.

TTML has reported widening of loss to Rs 1,070 crore in the April-June quarter mainly due to a provision of Rs 776.77 crore to clear revenue dues to the government.

The total revenue of the company declined by 16 per cent to Rs 247.82 crore during the reported quarter from about Rs 291 crore in corresponding quarter of 2019-20.