Tata Teleservices has approved conversion of interest payable on deferred AGR into equity
New Delhi:
Taking cues from Vodafone Idea, Tata Teleservices (Maharashtra) Ltd (TTML) on Tuesday informed that it has approved the conversion of interest payable on its deferred adjusted gross revenue (AGR) payable into equity.
Once the conversion is done, the government stake in the company is expected to be around 9.5 per cent.
The net present value (NPV) of this interest is expected to be around Rs 850 crore as per the company’s best estimates, subject to confirmation by the DoT, the company said in a regulatory filing.
According to the Bombay Stock Exchange (BSE) website data, the promoter and promoter group held 74.36 per cent stake in TTML as of September-end, while the public held 25.64 per cent.
Shares of TTML rose 5 per cent to hit a high of Rs 291.05 at Rs 291.05 on BSE. On October 16, 2020, the shares have gained Rs 2.82.
Earlier in the day, Vodafone Idea said that it has decided to opt for converting the interest liability of around Rs 16,000 crore payable to the government into equity, which will hold around 35.8 per cent stake in the company.
,