Tata Tele to raise $250 mn to fund expansion plans

Tata Tele to raise $250 mn to fund expansion plans

Mumbai: Tata Teleservices (Maharashtra) Ltd, plans to raise $250 million to fund its expansion plans, a top company official said.

“We have received approvals to raise $250 million at any time. The company’s Board will have to take a call," Tata Tele’s managing director, Mukund Rajan said.

The company has already obtained shareholders’ permission for raising $200 million through FCCBs, which has not been exercised.

The positive market response to the company’s offerings in an extremely competitive and volatile market could require advancement of planned capital expenditure.

“Our capital expenditure for this year was in excess of Rs1,000-crore, which was already spent. Thanks to the response to our GSM plan, we have advanced Q4 capex to Q3. Towards the end of Q3, we should be in a position to take a decision on further capital expenditure plan," Rajan said.

The company has applied for additional spectrum of GSM of 4.4 MHz to 6.2 MHz in Mumbai and Maharashtra, he said.

The company which adopted Tata DoCoMo’s per second tariff plan for its GSM services in Mumbai and Maharashtra believes the current pricing is profitable.