Tata Teleservices shares surge as TTML to not convert AGR dues into equity. Key stock levels to watch
Premium- Tata Teleservices (TTML) said it has decided against conversion of interest amount on AGR dues into equity
Shares of Tata Teleservices (Maharashtra) Ltd (TTML) hit the upper circuit level by surging 5% to ₹149 apiece on the BSE in Wednesday's early deals after the company announced its decision to not opt for conversion of interest related to AGR dues into equity, as the interest amount eligible for such conversion has turned out to be far lesser than the company's own calculations.
"As the interest amount eligible for conversion is much lesser than as expected and calculated by the company, the board of directors...in its meeting held on February 1, 2022, has decided to withdraw the desire expressed for conversion," the company said in an exchange filing on Tuesday. The company added that it is not desirous of opting for conversion of interest into equity.
TTML had initially decided to go for conversion of interest on AGR dues into equity and had also communicated its decision to the telecom department. In response, the telecom department told the company that the NPV (net present value) of the interest, which is eligible for conversion into equity, is only ₹195.2 crore as against the company's calculation of ₹850 crore.
"Tata Teleservices stock is witnessing very low volume with high speculations which has trapped the investors. It has shown some recovery after the company canceled the plan to convert its statutory debt to equity in the name of the government. The stock may remain in the range of 142-200 levels with high volatility so it’s advised to avoid this stock for some more time," said Ravi Singh, VP and Head of Research at Share India Securities.
MINT PREMIUM See All
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!