Tata Teleservices Ltd opts to convert the interest & AGR dues into equity

The government is likely to own a 9.5% stake in the company. 

On Tuesday, January 11, Tata Teleservices Ltd informed the stock exchanges that it has opted for the conversion of interest & adjusted gross revenue dues which is worth Rs 850 crore into equity. The government is likely to own a 9.5% stake in the company.

“It is now informed that pursuant 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, including, the governance of the company post-conversion of the interest amount into equity shares and various regulatory/legal provisions including Section 62(4) and Section 53 of the Companies Act,” the company said in a statement.

The conversion will be subject to a mutual agreement with terms & conditions. The telco has offered the stake to the government at Rs 41.50/share. “In case of conversion, it will result in dilution of all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the Government will hold approx. 9.5% of the total outstanding shares of the company,” the statement further added.

Earlier today another telco Vodafone Idea (Vi) announced regarding the conversion of dues into equity. This resulted in the downfall of the shares, the stocks of Vi was down by 20% on NSE.

 

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