Tata Tele subsidiary to raise Rs 3,000 crore from promoter

TTML narrowed its standalone loss to Rs 159.3 crore for the March quarter

Tata Teleservices (Maharashtra) will raise up to Rs 3,000 crore from its promoter Tata Teleservices through allotment of preferential equities.

"Board of directors of the company at its meeting held on June 25, 2016, has considered and approved issue of redeemable preference shares up to an amount of Rs 3,000 crore to Tata Teleservices Limited (Promoter) on preferential basis," Tata Teleservices Maharashtra (TTML) said in a regulatory filing.

The allotment has to be approved by shareholders.

TTML, which operates mobile services in Maharashtra, including Mumbai circle, and Goa narrowed its standalone loss to Rs 159.3 crore for the March quarter in 2016, from Rs 163.9 crore a year ago. Its standalone loss for 2015-16 too came down to Rs 497.9 crore, from Rs 615.3 crore.

The company, whose telecom licence is expiring in September 2017, has recorded a provision for impairment of CDMA fixed assets of Rs 29 crore.

Meanwhile, the promoter of Tata Teleservices (TTSL), Tata Sons, has been asked to pay Japan's largest mobile phone firm NTT DoCoMo $1.17 billion in compensation for breaching an agreement on India joint venture.

The London Court of International Arbitration ruled in favour of DoCoMo over price it was entitled to for exiting the Indian joint venture, the Japanese firm said in a statement.

Stock of TTML closed at Rs 6.48, down 3.43%, on BSE on Friday.