TTML to raise up to Rs 35,000 crore through equity, debt

Telecom operator Tata Teleservices Maharashtra will raise up to Rs 35,000 crore through preferential shares and non-convertible debentures, according to a BSE filing by the firm.

Out of the total, the company has received board approval to raise Rs 15,000 crore from its promoters which include Tata Sons and its subsidiaries.

The board of Tata Teleservices Maharashtra Ltd (TTML) has approved raising of the rest of Rs 20,000 crore through non-convertible debentures in one or more tranches.

"The board of directors of the company at its meeting held on May 29, 2019, has approved raising of additional funds by issue of...redeemable preference shares to the promoter/s on preferential basis up to an aggregate amount of Rs 15,000 crores; and/or non-convertible debentures in one or more tranches up to an aggregate amount of Rs 20,000 crore," the filing said.

The company has reported a standalone profit after tax of Rs 579.55 crore in the quarter ended March 31, due to partial reversal of impairment provision it made in previous years. TTML had recorded a loss of Rs 681.5 crore in the corresponding period a year ago.

The annual loss of TTML narrowed to Rs 667.6 crore for 2018-19 from Rs 9,841.99 crore in the previous fiscal.

TTML in a note said the accumulated loss of the company at the end of the financial year 2018-19 has exceeded paid-up capital and reserves.

"The company's current liabilities exceeded its current assets" as on March 31, the note said.

However, it has received a support letter from its promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity during the period of 12 months from the balance sheet date, a statement signed by TTML Managing Director N Srinath said on Wednesday.