Tata Tele (Maha) seeks shareholders' nod to raise Rs 20,000 cr

Tata Teleservices (Maharashtra) Ltd has sought approval of shareholders to raise up to Rs 20,000 crore, including from its promoters, mainly for repayment of debt.

The company might initially accept Inter-Corporate Deposit (ICD) "from the promoters including Tata Teleservices Ltd (TTSL) and/or Tata Sons Ltd (TSL) and/or Panatone Finvest Ltd (Panatone)...," according to a notice send out to shareholders.

This is to meet the requirement for additional funds worth Rs 20,000 crore, it added.

According to the notice, the ICD might be later converted into redeemable preference shares.

Similarly, ICD of Rs 5,220 crore already availed and those which might be availed from TTSL, TSL and Panatone could also be converted into non-cumulative redeemable preference shares, if the three entities seek to do so, as per the notice.

Tata Teleservices (Maha) Ltd has proposed to issue up to 200 crore redeemable preference shares of Rs 100 each for cash at par aggregating up to Rs 20,000 crore on preferential basis to TTSL, TSL or Panatone in tranches.

TTML said the fund-raising plans would be placed for shareholders' approval at the annual general meeting to be held on September 29.

On August 10, the company's board approved the proposal to raise up to Rs 20,000 crore through issuance of non-cumulative redeemable preference shares, non-convertible debentures or ICDs and loans.

"The funds raised through one or more options will be utilised primarily for repayment/ prepayment of existing debt/ loans of the company, including deferred payment liability to Department of Telecommunications for spectrum and/ or for redemption of the existing Redeemable Preference Shares issued earlier...," the company said.