Tata Teleservices (Maharashtra) was locked in 5% lower circuit at Rs 276.50, for eight consecutive session.
The stock has declined 33.62% in eight sessions, from its recent closing high of Rs 291.05 recorded on 11 January 2022.
Tata Teleservices (Maharashtra) on 11 January 2022 said it will opt for conversion of the interest amount on adjusted gross revenue (AGR) dues into equity.
The net present value (NPV) of this interest is expected to be nearly Rs 850 crore as per the company's best estimates, subject to confirmation by the Department of Telecom (DoT), it said in a regulatory filing.
The average price of the company's shares at the relevant date of 14 August 2021, as per the calculation method provided in the DoT communication works out to be about Rs 41.50 per share, subject to final confirmation by the DoT.
In case of conversion, it will result in dilution of all the existing shareholders of the company, including the promoters, the filing said.
Following conversion, it is expected that the government will hold approximately 9.5% of the total outstanding shares of TTML.
Last year, DoT had provided various options to telcos in connection with Telecom Reforms Package. It offered a one-time opportunity to opt for deferment of AGR related dues as determined by the Supreme Court in the AGR case, by a period of 4 years with immediate effect. It also offered a one-time opportunity to exercise the option of paying interest for the 4 years of deferment on the deferred AGR dues by way of conversion into equity of the NPV of such interest amount.
TTML reported net loss of Rs 313.63 crore in Q2 September 2021 as against net loss of Rs 341.19 crore in Q2 September 2020. Net sales rose 4.72% to Rs 268.77 crore in Q2 September 2021 over Q2 September 2020.
TTML is a leading player in the connectivity and communication solutions market serving enterprise customers. With services ranging from connectivity, collaboration, cloud, security, IoT and marketing solutions, it offers a comprehensive portfolio of ICT services for businesses in India under the brand name Tata Tele Business Services (TTBS).
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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