Shares of Tata Teleservices Ltd, a subsidiary of the Tata Group, tanked down by 5.00% on 12 Jan, 1:41 pm IST on National Stock Exchange at Rs 275.65 apiece, after the company settled to convert interest related to adjusted gross revenue (AGR) dues of Rs 850 crore into equity. The government will own approx. 9.5 per cent stake as per company’s estimations. The statement of Tata Teleservices (Maharashtra) came within hours of Vodafone Idea also settling to opt for remaking the interest amount on AGR dues into government equity,
“There is a lot of speculation around this stock daily hitting upper and lower circuits. We might expect the stock to hit the lower circuit as it will create a panic. Tata Teleservices has an AGR due of Rs 16798 crore, out of which Rs 4197 crore has been paid. The initiative seems good as converting such debts is beneficial for both government and company,” Manoj Dalmia, founder and director of the company said.
In the past three months, the stock of Tata group telecom services provider had skyrocketed over 536 per cent, corresponding to a 1.5 per cent rise in the S&P BSE Sensex till January 11. The stock documented a high of Rs 291 on Tuesday, January 11, 2021.
“… according to the Empowered Committee of the Board of Directors, at its meeting held on January 11, 2022, the company is expressing its desire for the conversion of the full amount of such interest related to AGR dues into equity subject to a mutual agreement on the terms and conditions,” the company said in a regulatory filing.
Tata Teleservices Limited along with its subsidiary, Tata Teleservices (Maharashtra) Limited, is a leading enabler of digital connectivity and cloud solutions to enterprises. Its services range from connectivity, collaboration, cloud, SaaS, security, IoT, and a wide range of marketing solutions.