TTML surges after winning spectrum in recent auction

Tata Teleservices (Maharashtra) surged 6.12% to Rs 6.42 at 15:23 IST on BSE after the company said it has won 5 MHz spectrum in 1800 MHz band each in Mumbai and Maharashtra service areas in the recently concluded spectrum auction.

The announcement was made after market hours on Friday, 7 October 2016.

Meanwhile, the S&P BSE Sensex was up 20.62 points or 0.07% at 28,081.76.

On BSE, so far 8.25 lakh shares were traded in the counter as against average daily volume of 3.13 lakh shares in the past one quarter. The stock hit a high of Rs 6.47 and a low of Rs 6.15 so far during the day. The stock had hit a 52-week high of Rs 9.40 on 8 December 2015. The stock had hit a 52-week low of Rs 5.42 on 30 September 2016. The stock had outperformed the market over the past one month till 7 October 2016, advancing 1.17% compared with 2.99% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 15.97% as against Sensex's 3.16% rise.

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

Tata Teleservices (Maharashtra) said it has succeeded in winning 5 MHz spectrum in 1800 MHz band each in Mumbai and Maharashtra service areas with bid values of Rs 2446 crore and Rs 1590 crore respectively, in the recently concluded spectrum auction. The spectrum validity is 20 years and the company has option of deploying technology of its choice in this spectrum. The total upfront payment to be made to Department of Telecommunications by the company is Rs 2018 crore. This is in addition to the current holding of 2.5 MHz each in Mumbai and Maharashtra in 800 MHz band which was acquired in the auction held in March 2015, which also is valid for 20 years.

Tata Teleservices (Maharashtra) reported a net loss of Rs 108.07 crore in Q1 June 2016, higher than net loss of Rs 83.53 crore in Q1 June 2015. Net sales declined 1.6% to Rs 722.97 crore in Q1 June 2016 over Q1 June 2015.

Tata Teleservices (Maharashtra) (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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