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Telecom firm Tata Teleservices (Maharashtra) will issue bonus shares to its public shareholders to comply with Sebi's 25% minimum public shareholding norm.
The promoters of the company will forgo their entitlement to the bonus shares, the company said in a release.
Tata Tele (Maha) has called for an extra-ordinary general meeting to seek shareholder approval for the bonus issue and to fix a record date.
Shares of the company rose nearly 10% to Rs 6.64 after the announcement.
Post the bonus issue, the Tata group-promoted company is expected to become public shareholding complaint. Currently, the promoter holding in the company stands at 77.21%.
Market regulator Sebi had earlier this month barred 105 companies, including Tata Tele (Maha) for failing to comply with the 25% minimum public shareholding requirement.
Tata Sons had earlier sold 0.52% stake in Tata Tele (Maha) through offer for sale (OFS).
The promoters of Tata Tele (Maha) would have fetched over Rs 25 crore if the company would have decided to sell the excess stake in the market instead of opting for bonus shares.
