TTML drops after denying merger talks with Tata Teleservices

Tata Teleservices (Maharashtra) lost 2.96% to Rs 7.87 at 12:37 IST on BSE after the company denied media reports that discussions are going on regarding possible merger of Tata Teleservices (Maharashtra) with Tata Teleservices.

The company issued the clarification after trading hours on Tuesday, 22 October 2013.

Meanwhile, the S&P BSE Sensex was down 180.74 points or 0.87% at 20,684.23.

On BSE, 9.98 lakh shares were traded in the counter as against average daily volume of 4.57 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 6.28% at the day's low of Rs 7.60 so far during the day. The stock rose as much as 2.34% at the day's high of Rs 8.30 so far during the day. The stock had hit a 52-week high of Rs 13.16 on 29 November 2012. The stock had hit a 52-week low of Rs 4.83 on 13 June 2013.

The stock had outperformed the market over the past one month till 22 October 2013, surging 29.55% compared with the Sensex's 2.97% rise. The scrip had also outperformed the market in past one quarter, jumping 18.39% as against Sensex's 3.5% rise.

The small-cap company has equity capital of Rs 1954.93 crore. Face value per share is Rs 10.

Shares of Tata Teleservices (Maharashtra) (TTML) had surged amid high volumes on Tuesday, 22 October 2013, on reports that Tata Teleservices is in exploratory talks for the merger of TTML with the company. Tata Teleservices holds 36.54% stake in Tata Teleservices (Maharashtra) (TTML) (as per the shareholding pattern as on 30 September 2013).

TTML reported net loss of Rs 126.89 crore in Q1 June 2013, lower than net loss of Rs 162.66 crore in Q1 June 2012. Net sales rose 1% to Rs 666 crore in Q1 June 2013 over Q1 June 2012.

TTML spearheads the Tata group's presence in the telephony sector in the telecom circles of Maharashtra (including Mumbai) and Goa.

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