Tata Teleservices plans to invest Rs 4,000 cr in listed arm

This is to meet Tata Teleservices (Maharashtra)'s lender commitments

Loss-making Tata Teleservices is planning to invest an additional Rs 4,000 crore in its listed arm, Tata Teleservices (Maharashtra) (TTML), so that the latter can meet lender commitments.

Tata Teleservices would raise the funds from its own shareholders, mainly Tata Sons, by way of issuing compulsorily convertible non-cumulative preference shares or optionally convertible non-cumulative preference shares on rights basis.

In its annual report for the financial year 2016-17 (FY17), Tata Teleservices had said that as on March 31, 2017, TTML had breached certain covenants with its lenders, which may result in loans being recalled by the lenders. “Tata Sons have