By Malvika Gurung
Investing.com -- Shares of the telecommunications company Tata Teleservices Ltd (BO: TTML )) dropped 5% and were locked at the lower circuit at Rs 275.65 apiece on Wednesday after the Tata Group subsidiary announced to opt for converting the interest related to deferred adjusted gross revenue (AGR) dues to equity.
Once the conversion comes through, the Government’s stake in the company is estimated to become about 9.5%, making it the biggest shareholder in the company, which is currently under a debt of Rs 1.95 lakh crore.
The net present value of the total interest due is expected to be around Rs 850 crore, currently subjected to confirmation from the Department of Telecommunications.
As per TTML’s statement, the average price of its shares, according to the computation technique used at the relevant date of August 14, 2021, comes out to be Rs 41.5/share, which will be finally approved by the DoT.
Its decision to opt for conversion of deferred interests on AGR dues to equity came right after the debt-laden telco Vodafone Idea (NS: VODA ) decided to do the same.
Tata Teleservices Maharashtra has rallied 3,000% in the past year and almost 13,000% in the past two, despite having posted losses in past years, stated an ET report. It has been locked in a 5% upper circuit for the past 13 sessions.
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