After Vodafone-Idea, Government To Get 9.5 Per Cent Stake In Tata Teleservices

Telecom News: According to media reports, the average price of the company's shares will be Rs 41.5 per equity share. After the conversion, the government will hold 9.5 per cent of the total shares in the company.

Published: January 12, 2022 11:06 AM IST

By India.com Business Desk | Edited by Raghav Aggarwal

Telecom news government to hold 9.5 per cent stake in tata teleservices after 35 per cent stake vodafone idea
Telecom News: Government will hold 9.5 per cent stake in Tata Teleservices (Photo: IANS)

New Delhi: Tata Teleservices became the second company, after Vodafone-Idea (Vi) to opt for converting the outstanding dues with the government, to equity. The company made the announcement to convert outstanding interest on the deferred spectrum and Adjusted Gross Revenue (AGR) on Tuesday, according to media sources.

Also Read:

In a regulatory filing, the company said, “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 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 will communicate the foregoing to the DoT.”

The outstanding interest of Tata Teleservices is expected to be around Rs 850 crores. According to media reports, the average price of the company’s shares will be Rs 41.5 per equity share. After the conversion, the government will hold 9.5 per cent of the total shares in the company. Also, the shares issued will be issued on a preferential basis.

It is also being said that the shares will be held through a statutory undertaking of the UTI on behalf of the government and the government will have the discretion to convert the equity shares into preference shares at any point in time.

In September 2021, the government offered a slew of measures to the ailing telecom firms. The moratorium period for payment of AGR dues was extended to four years. Also, the companies were given an option to pay the interest by converting the amount into equity shares and transferring it to the government.

On Monday, Vi approved the conversion of its interest payment into equity to the government. This made the government of India, the biggest stakeholder in the company with around 35.5 per cent stake.

(With inputs from ANI)

For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.

Published Date: January 12, 2022 11:06 AM IST