Tata Tele Maharashtra shares soar 20%

Shares of Tata Teleservices (Maharashtra) Ltd (TTML) soared 20 per cent today after Tata Sons said it has agreed to pay Japanese telecom firm NTT Docomo USD 1.18 billion to settle the 2-year old dispute over their Indian telecom joint venture.
The stock zoomed 19.88 per cent to close at Rs 8.02 on BSE.
On NSE, it surged 19.4 per cent to end at Rs 8.
While Tata Sons and group companies held 63.14 per cent in TTML, Docomo had 11.76 per cent stake in it at the end of December last year.
The company's market valuation rose by Rs 260.85 crore to Rs 1,567.85 crore.

On the volume front, 95 lakh shares of the company were traded on BSE and over 5 crore shares changed hands at NSE during the day.

In a statement, Tata Sons said it has reached an agreement with NTT Docomo "on a joint approach to enable enforcement" of June 22, 2016, compensation award granted by the London Court of International Arbitration (LCIA) in favour of the Japanese company.
"As a gesture of good faith and in accordance with the Tata Group's long-standing record of adherence to contractual commitments that it has always enjoyed both in India and abroad, the board of Tata Sons has decided to withdraw its objections to the enforcement of the award in India," it said.

In September last year, Tata Sons had filed an objection in the Delhi High Court seeking to prevent enforcement of the arbitration award of USD 1.17 billion.
Tata Sons said that as per the agreement, the settlement terms, if approved, "clear the way for the USD 1.18 billion already deposited by Tata Sons with the court to be paid to Docomo and would allow Docomo to transfer its shares in Tata Teleservices Ltd".
NTT Docomo, in November 2008, acquired 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share), offering services under the Tata Docomo brand.