The Government will not be able to pick up any stake in Tata Teleservices Maharashtra (TTML) with the company informing that it will pay the interest due in cash instead of offering a equity stake that was discussed earlier. The company had calculated the due amount at ₹850 crore but the department of telecommunications (DoT) told the company that the amount is only ₹195 crore. Hence the company has decided to pay the same in cash.
Government was to pickup a a 9.5 per cent stake in TTML after telecom firms opted for the government’s relief measure of converting the interest on AGR (adjusted gross revenues) dues into equity.
“As the interest amount eligible for conversion is much lesser than expected and calculated by the Company, the Board of Directors of the Company, in its meeting held on February 1, 2022 has decided to withdraw the desire expressed for conversion and inform DoT that the Company is not desirous of opting for conversion of interest into equity,” a notice from TTML said.
TTML shares have halved from their peak of ₹290 to touch a low of ₹141 in just two weeks in January.
Published on
February 01, 2022
