TTML surges 18% in early trade on bourses

TTML surges 18% in early trade on bourses
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First Published: Fri, Nov 14 2008. 11 06 AM IST
Updated: Fri, Nov 14 2008. 11 06 AM IST
PTI
Mumbai: Shares of TTML today surged as much as 18% in the early trade on the bourses, after the Japanese firm NTT DoCoMo Inc acquired a 26% stake in Tata Teleservices.
Mobile telecom services provider Tata Teleservices is an unlisted entity, while its Maharashtra unit TTML is listed on the domestic bourses.
The scrip of Tata Teleservices Maharashtra Ltd (TTML) opened at Rs20, and rallied further to touch an intra-day high of Rs20.70, up 15.06% from previous close on the Bombay Stock Exchange.
On the National Stock Exchange TTML opened at the Rs20, and gained 18.33% to touch a high of Rs21.30. Over 1.41 crore shares changed hands on the bourses.
On Wednesday Japan’s biggest mobile-phone operator NTT DoCoMo Inc acquired a 26% stake for $2.7 billion (Rs13,070 crore) in Tata Teleservices.
Through a joint offer with Tata Sons, DoCoMo will also have to make an open offer to acquire up to 20% of the outstanding common shares of TTML.
Indian takeover regulations necessitate an acquirer to make an open offer for an additional 20% in the target firm when its stake increases to 15%.
Through the deal the Japanese firm valued Tata Teleservices at $10.4 billion.
Shares of TTML were trading at a gain of 10.17% at Rs19.82 on the BSE and at Rs19.80, up 10% on the NSE.
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First Published: Fri, Nov 14 2008. 11 06 AM IST