Tata Tele gets nod to raise money
The board of Tata Teleservices (Maharashtra) has cleared a proposal to raise up to Rs 20,000 crore through an issue of preference shares to promoters or via debentures.
- Published 19.10.17
New Delhi: The board of Tata Teleservices (Maharashtra) has cleared a proposal to raise up to Rs 20,000 crore through an issue of preference shares to promoters or via debentures.
The move comes close on the heels of the Tata group announcement that the consumer mobile business of TTML as well as that of Tata Teleservices (TTSL) would be taken over by Bharti Airtel on a debt-free, cash-free basis.
"The board of directors of the company at its meeting held on October 18, 2017 has approved raising of additional funds up to an aggregate amount of Rs 20,000 crore," Tata Teleservices (Maharashtra) said in a regulatory filing. The BSE filing did not, however, specify the purpose for the fund raising.
The proposal is "subject to approval of members either by way of postal ballot or at the extraordinary general meeting", it added.
TTML said the fund raising would be done through the issue of one or more types of instruments, including redeemable preference shares to promoters, non-convertible debentures in one or more tranches, and/or inter corporate deposit/loans or commercial paper from the promoters and others.
According to the deal announced last week, over four crore customers of TTSL and TTML in 19 telecom circles or zones will be taken over by Airtel, India's largest telecom operator. Airtel will also get access to 178.5 MHz of spectrum across 800, 1800, 2100 Mhz (3G, 4G) bands. PTI