 "TTML hits 5% lower circuit as telco opts for equity conversion on govt dues")
Shares of Tata Teleservices (Maharashtra) (TTML) were locked at the 5 per cent lower circuit at Rs 276.50 on the BSE in Wednesday’s trade after the company decided to convert interest related to adjusted gross revenue (AGR) dues of Rs 850 crore into equity. The government will hold approx. 9.5 per cent stake as per company’s estimates. In October, the company had decided to opt for deferment of these dues.
Currently, TTML is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed. Till 09:21 am; a combined 1.15 million equity shares had changed hands, and there were pending sell orders for around 20 million shares on the NSE and BSE.
In the past three months, the stock of Tata group telecom services provider had zoomed over 536 per cent, as compared to 1.5 per cent rise in the S&P BSE Sensex till January 11. The stock had hit a record high of Rs 291 on Tuesday, January 11, 2021.
In a filing to the BSE, TTML said Net Present Value or NPV of interest is expected to be nearly Rs 850 crore as per the company's estimates, subject to confirmation by the Department of Telecom (DoT). The average price of the company’s shares at the relevant date of August 14, 2021 as per the calculation method provided in the DoT Communication works out to be around Rs 41.50 per share, subject to final confirmation by the DoT.
The Empowered Committee of the Board of Directors, at its meeting held on January 11, 2022, the company is expressing its desire for the conversion of the full amount of such interest related to AGR Dues into equity subject to mutual agreement on the terms and conditions, including, the governance of the company post conversion of the interest amount into equity shares. The company will communicate the foregoing to the DoT, TTML said.
TTML further said, in case of conversion, it will result in dilution of all the existing shareholders of the company, including the Promoters. Following conversion, it is expected that the Government will hold approx. 9.5 per cent of the total outstanding shares of the company. CLICK HERE FOR RELEASE
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