TTML zooms 71% in one week on Q4 profit, fundraising plan of Rs 35K crore

The company reported a net profit of Rs 580 crore in the March quarter (Q4FY19) against a net loss of Rs 680 crore in the year-ago period.

Shares of Tata Teleservices (Maharashtra) (TTML) were locked in the upper circuit for second straight session on Monday, having jumped 10 per cent intra-day to hit Rs 4.57 apiece. It has surged 71 per cent in the past one week on the BSE after the company reported net profit of Rs 580 crore in March quarter (Q4FY19) against a net loss of Rs 680 crore last year.

The company also reported an exceptional gain of Rs 510 crores on partial reversal of impairment, recorded during the previous year.

"The accumulated losses of the company as of March 31, 2019, have exceeded its paid-up capital and reserves. Proceeds from the demerger of our consumer mobile business will primarily be utilised towards reduction of residual debt and other financial obligations," TTML said in a statement.

It further said it has obtained a support letter from its promoters indicating that they will take necessary actions to organise for any shortfall in liquidity during the period of 12 months from the balance sheet date.

The Tata Group company said it will raise up to Rs 35,000 crore through preferential shares and non-convertible debentures.

"The directors of the company, at its board meeting, have 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 crore; and/or non-convertible debentures in one or more tranches up to an aggregate amount of Rs 20,000 crore," the regulatory filing of the telecommunication services major said.

The counter saw huge trading activities with the combined volume more-than-doubling at 2.8 million shares on the NSE and BSE till 12:44 pm. Data showed pending 'buy' orders for 2.19 million shares on both exchanges.