Tata Tele Maharashtra to Raise Additional Fund of Rs 20,000 Crore Through Debt

By August 11th, 2018 AT 10:01 AM

Debt-ridden telecom firm Tata Teleservices Maharashtra has now received its board’s approval to raise an additional fund of Rs 20,000 crore through debt instruments. “…the board of directors of the company at its meeting held on August 10, 2018, has approved raising of additional funds up to an aggregate amount of Rs 20,000 crore,” Tata Teleservices (Maharashtra) said in a regulatory note, as reported by PTI. The fundraising will be done either by issue of securities, instruments etc. including redeemable preference shares to promoters on preferential basis, non-convertible debentures or inter-corporate deposit or loans from the promoters or other entities.

tata-tele-maharashtra

The parent firm of the company Tata Teleservices (TTSL) has dues of around Rs 10,000 crore pending to be paid to the telecom department. TTSL is in the process of merging its mobile service business with Bharti Airtel and will need to clear dues before the DoT takes merger on record.

Tata Tele Maharashtra Posted Losses in Q1 FY18

TTML posted narrowing of total comprehensive loss to Rs 454.46 crore for the three months ended June 30, 2018, from Rs 681.26 crore in the March quarter and Rs 506.04 crore during the April-June previous fiscal.

The company, whose accumulated losses have exceeded its paid-up capital and reserves, had said in a regulatory filing that it had secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt.

Tata Tele Merger With Bharti Airtel

TTML has obtained a support letter dated May 28, 2018, from its promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity of the company that may arise to meet its financial obligations and timely repayment of debt.

Tata Teleservices is in discussions to monetise “certain assets”, proceeds of which will be used to meet its financial obligations when they fall due.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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