BackTTSL opts for converting interest on AGR dues to equity
The equity holding in the unlisted entity will based on the net present value which will be arrived at through mutual agreement after discussions between the two sides
PremiumNEW DELHI : Tata Teleservices Limited (TTSL) has written to department of telecommunications for converting interest on adjusted gross revenue (AGR) dues to equity, according to people aware of the development.
The equity holding in the unlisted entity will based on the net present value which will be arrived at through mutual agreement after discussions between the two sides, the company is learnt to have told the department in a communication, the people said.
The people added that the dues were amounting to ₹4,139 crore according to prior calculations. However, the NPV formula adopted by DoT for listed companies would not apply to TTSL, therefore company officials will hold discussions with the department to finalise the equity holding.
TTSL did not respond to queries as of Wednesday evening. The company follows sister company Tata Teleservices Maharashtra Ltd, the listed entity, which opted for conversion to equity of interest of ₹850 crore on AGR dues. After approvals, government will own 9.5% as a shareholder. Along with Vodafone Idea which has sought for converting interest on AGR and spectrum dues to equity, a total of three companies have taken the option of conversion of interest on dues to equity. The deadline for the conversion ended on Wednesday.
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