Mumbai, Dec. 22: Tata Teleservices Maharashtra (TTML) will come out with a rights issue to garner Rs 300-325 crore. The issue is likely to be priced between Rs 25 and Rs 27 per share.

Shareholders will get two shares for every 25 held in the company, Tata Teleservices informed the stock exchanges today.

The proceeds from the rights issue will be used to strengthen TTML’s presence in the regions where it currently operates, sources said. TTML provides mobile, fixed wireless phone, public telephone and wireline services in Maharashtra (including Mumbai) and Goa.

Its suite of broadband data network and application services include leased lines, DSL, wi-fi, ethernet, managed gateway and web conferencing.

The company was renamed as TTML from Hughes Telecom (India) Ltd following the acquisition of a 70.83 per cent stake by the Tata group in December 2002.

On the BSE today, TTML shares closed at Rs 28.30 after opening at Rs 30.55.

TTML’s rights issue comes at a time when the Tatas are planning massive investments of over Rs 5,000 crore in the telecom sector.

In telecom, the group has three players ? VSNL, Tata Teleservices, which provides telecom service to other parts of the country, and TTML. Though both Tata Teleservices and TTML are loss-making, the group feels that they will soon turn around.