Tata Teleservices board approves issue of Rs2,500 cr NCDs1 min read . Updated: 30 Jan 2015, 12:44 AM IST
The issue will be completed in one or more tranches by way of private placement
Mumbai: Tata Teleservices (Maharashtra) Ltd said on Thursday that the firm’s board has approved an issue of non-convertible debentures of up to ₹ 2,500 crore.
The issue will be completed in one or more tranches by way of private placement, the company said in an update on the exchanges. The fund-raising is subject to the approval of shareholders, it added.
The company reported a loss of ₹ 169.08 crore for the three months ended 31 December, compared with a loss of ₹ 156.36 crore a year ago, on a stand-alone basis.
However, revenue rose to ₹ 721 crore in the December quarter compared with ₹ 662.26 crore in the same period last year.
In April 2014, Japanese telecom firm NTT Docomo had decided to sell its entire 26.5% stake in money-losing Tata Teleservices, possibly at a big discount, and withdrew from mobile telephony in India after a five-year struggle that highlighted the challenges in the domestic market.
Tata Sons Ltd, the Tata Group’s holding company, has made an application to the Reserve Bank of India (RBI) to buy NTT Docomo’s stake in Tata Teleservices.
On 14 January, Reuters reported that RBI has allowed Tata Sons to buy NTT Docomo’s stake in their struggling venture, paving the way for the completion of the long-delayed $1.1 billion deal.
The announcements were made after market trading ended for the day.
Shares of Tata Teleservices closed unchanged at Rs9.26 on Thursday, while the benchmark Sensex gained 0.41% to close at 29,681.77 points.