Tata Teleservices Maharashtra Ltd (TTML) Considering to Raise Up to Rs. 20,000 Crore Funds

By October 15th, 2017 AT 10:38 AM

Tata Group’s telecom company Tata Teleservices Maharashtra Ltd (TTML) said that it’s planning to raise up to Rs. 20,000 crore via preference shares to promoters or via bonds. Tata Sons recently announced a merger with Bharti Airtel which is a “debt-free (and) cash-free.”

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Under the deal, over 40 million Tata Teleservices customers will be moved to Bharti Airtel, after the deal completion. TTML, in a notice to the stock exchange, said that the board will be meet on October 18 to speak further on the fundraising. That said, TTML did not specify the purpose of fundraising though, according to PTI.

“…a meeting of Board of Directors of the company is scheduled to be held on October 18 to consider the proposal to raise additional funds up to an aggregate amount of Rs. 20,000 crore,” said TTML.

“The company added that this will be done through the issue of one or more types of instruments including redeemable preference shares to promoters, non-convertible debentures in one or more tranches, and/or inter-corporate deposit/loans from the promoters and others,” added the report.

Right after announcing the merger, shares of Bharti Airtel have seen a price surge of 8% on Friday. That said, Airtel investors also cheered up the purchase of Tata Group’s mobile arm.

The deal with Tata Teleservices Ltd “is a sweet one for Bharti,” domestic brokerage Kotak said in a research note, raising its recommendation on Bharti stock to “add” from “reduce.”

On Friday, Airtel’ shares were up by 7.08%, and shares of TTML were up by 9.1%. Tata Teleservices Limited (TTSL) and Tata Teleservices Maharashtra Limited (TTML) were loss-making entities for Tata Sons, which ultimately led the unit to merge with Airtel.

With this deal, Bharti Airtel is benefited in every aspect possible. The leading telecom operator will get over 40 million subscribers with no hassle; Bharti can also make of spectrum of Tata Teleservices; and lastly, it will help Airtel to extend its domination in the Indian market. Airtel is promising smooth and flawless services to the 40 million customers.

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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Ved (CG)RayAyazmannulkoAdithya Vardhan Recent comment authors
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Ved (CG)
Ved (CG)

Off Topic : Does anyone know anything about Jio phone delivery ? They said they will deliver it by Diwali (19th oct ) .Till now no news about that .

Chetan
Chetan

New date is End of October as per various media sources on twitter.

Ved (CG)
Ved (CG)

This is really disgusting .I am shifting to Delhi on 20th oct .Now how will i get this phone ? . It’s been more than 50 days they haven’t delivered the phone .

Adithya Vardhan
Adithya Vardhan

Seems to going the same way as Rs. 250 phone.

mannulko
mannulko

Got the fone on 14th oct

Ray
Ray

Rs 153 recharge is pre done or i have to pay rs 1000 + 153 while reciving the handset?

Ayaz
Ayaz

I am getting daily SMS to collect the JioPhone since Friday but checked with the nearest Jio Store around my area in Pune they said phone has not yet arrived come after Tuesday! Very Frustrating Experience!

Ray
Ray

same thing happen to me also.
I went sunday to the jio store as i got sms to collect my oreder on 15th but the store executive told me to come on tuesday.

Ved (CG)
Ved (CG)

Till date i haven’t got any message .

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