Tata Teleservices (Maharashtra) was locked in 20% upper circuit at Rs 10 after the Reserve Bank of India (RBI) approved the offer for buyback of DoCoMo's stake in the company.
In a breather to NTT DoCoMo, the Reserve Bank of India (RBI) has agreed to a Tata group proposal to buy back DoCoMo's 26.5 per cent stake in Tata Teleservices at a pre-determined price of Rs 58 a share (Rs 7,250 crore for the entire stake), despite the company's valuer, Price Waterhouse, estimating the stake at Rs 23.34 a share, 60 per cent lower.
On December 22 2014, RBI told the finance ministry the Tatas had hired Price Waterhouse to determine the fair value of the shares of Tata Teleservices, soon after DoCoMo expressed interest to exit the company in April 2014.
The stock opened at 20% upper circuit at Rs 10. At 9:30AM, over 2 million shares were traded on both the stock exchanges.
