The net present value of the interest is expected to be about Rs 850 crore and is subject to confirmation by the department of telecommunications
Tata Teleservices (Maharashtra), a Tata Group company, share price was locked at the 5 percent lower circuit in early trade on January 12 after the company approved conversion of interest payable on its deferred adjusted gross revenue (AGR) dues into equity.
There were pending sell orders of 3,762,433 shares, with no buyers available.
Tata Teleservices (Maharashtra) on January 11 expressed its desire for the conversion of the full amount of such interest related to adjusted gross revenue (AGR) dues into equity, the company said in its release.
The net present value of the interest is expected to be about Rs 850 crore and is subject to confirmation by the Department of Telecommunications.
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 Rs 41.50 per share, subject to final confirmation by the DoT, the company said.
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In case of conversion, it will result in dilution of all the existing shareholders of the Company, including the promoters.
Following the conversion, it is expected that the government will hold around 9.5 percent of the total outstanding shares of the company, it added.
The DoT had provided various options for telecom service providers to clear their dues on October 14. They included the deferment of spectrum auction payment dues and AGR-related dues for up to four years. The DoT also said the telcos could convert the interest due on deferred spectrum and AGR dues into equity.
The TTML board approved the deferment of its AGR dues on October 26.
At 9:16am, Tata Teleservices (Maharashtra) was quoting at Rs 276.50, down Rs 14.55, or 5 percent, on the BSE.