Tata Teleservices
After Vodafone, Tata Tele opts for equity conversion of interest dues; govt to get 9.5 pc stake
Mumbai/IBNS: Tata Teleservices has opted for the conversion of the interest on spectrum and adjusted gross revenue (AGR) dues into equity, where the government will own about a 9.5 percent stake in the telco.
On Tuesday, the board of Vodafone Idea approved the conversion of interest on spectrum auction installments and adjusted gross revenue (AGR) dues into equity.
"... the Company is expressing its desire for the conversion of the full amount of such interest related to AGR Dues into equity subject to a 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," said the telco in a statement on Tuesday.
The Net Present Value (NPV) of this interest is expected to be approx. Rs.850 crore as per the Company’s best estimates, subject to confirmation by the DoT, Tata Tele informed the exchanges.
"The average price of the company’s shares at the relevant date of August 14, 2021 as per the calculation method provided in the DoT communication works out to be around Rs. 41.50 per share, subject to final confirmation by the DoT," the company said.
So far, Tata Teleservices has paid Rs 4,197 crore of its Rs 16,798 crore AGR dues and had opted for the 4-year AGR and spectrum payment moratorium.
"Following conversion, it is expected that the Government will hold approx. 9.5 percent of the total outstanding shares of the Company," said the operator.
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