Mumbai, June 27 :    Mumbai, June 27:  Tata Teleservices (TTL) today said it had picked up 50.83 per cent in Hughes Telecom in a uniquely structured deferred-payment deal worth Rs 1,300 crore spread over six years. The cost will be Rs 1,100 crore if the sellers exercise their right after 51 months. An open offer for an additional 20 per cent will be made at a price of Rs 7.20 to shareholders in four days. The Tatas have pegged the net present value for each Hughes Tele.com share at Rs 5.10. According to a Tata official, Hughes' floating stock is around 5 to 6 per cent of its equity. 'We have signed a definitive agreement to acquire 50.83 per cent in Hughes Telecom. This provides us an entry into Mumbai and the rest of Maharashtra, besides Andhra Pradesh,' Ishaat Hussian, director (finance), Tata Sons, said. Company chairman Ratan Tata said the deal would help the group achieve its objective to provide world class telecom services. The acquisition pitchforks the Tatas to a position where they can rival Mahanagar Telephone Nigam, Mumbai's undisputed basic telephony leader. The deal will be closed by October, the Tatas said. Tata Teleservices will pay for the 71.43 crore shares by issuing redeemable non-cumulative convertible preference shares in favour of Hughes Telecom's sponsors - Hughes Network Systems, Ispat Industries and AllTel Corporation. The Rs 10 share, carrying an interest coupon of 0.1 per cent, can be redeemed either at the end of 51 months at a price of Rs 8, or after 75 months at a price of Rs 10 each. Hughes Telecom India will restructure the $ 75-million loan it has taken from Hughes Network Systems. Of this, $ 50 million will be rescheduled as long-term debt. 'Hughes Network will partially transfer the receivables of Hughes Telecom India to Tata Teleservices in exchange for the preference shares and warrants of the Tata firm,' Deepak Dutt, vice-president and treasurer of Hughes Network Systems said. Hughes Network Systems, Ispat group and AllTell own 55 per cent of Hughes Tele's Rs 1,405-crore equity capital. The remaining stake is held by a variety of financial investors and the general public. TTL officials said Ispat would retain 4 per cent. 'As we go ahead, Tata Teleservices intends to realign and restructure the debt profile of Hughes Telecom to provide funds required for the Maharashtra circle at more favourable rates of interest,' TTL managing director S. Ramakrishnan said. Underlining the importance of Hughes' acquisition, Ramachandran said his company aims to enlarge its presence with an investment of Rs 9,000 crore over the next four years, and take the number of subscribers to three million over the period. 'Hughes' 1.7 lakh subscribers, including the 1.2 lakh in Mumbai, gives us an immediate presence in Maharashtra. Otherwise, we would have entered as a rival,' Ramakrishnan said. Tata Teleservices will now straddle six telecom circles across Andhra Pradesh, Karnataka, Tamil Nadu, Gujarat, Delhi and Maharashtra, including Mumbai. 'The circles account for 56 per cent of subscribers and 65 per cent of revenue,' Ramachandran added. Hussain said the Tatas are looking at Punjab, Haryana and Kerala, revenue-rich circles that could help the group sew up inter-connection agreements.