NEW DELHI: Tata Teleservices Maharashtra (TTML) plans to raise up to Rs 20,000 crore through an issue of preference shares to promoters or via debentures. However, the company did not elaborate the purpose for the fund-raising. “... the Board of directors of the company at its meeting held on October 18, 2017 has approved raising of additional funds up to an aggregate amount of Rs 20,000 crore,” Tata Teleservices (Maharashtra) said in a regulatory filing.Industry observers said this could be a natural next step following the Tata Group’s decision to move its consumer mobile business of TTML as well as that of Tata Teleservices (TTSL) to Bharti Airtel on a debt-free, cash-free basis.
TTML in a BSE filing stated the fund-raising will be done through the issue of one or more types of instruments, including redeemable preference shares to promoters, non-convertible debentures in one or more tranches, and/or inter- corporate deposit/loans or commercial paper from the promoters and others.
The deal with Bharti Airtel is part of Tata Group’s plan to find a solution for the troubled mobile business that had been under pressure with huge debt spectrum liability and monthly cash losses.
Tata Sons chairman N Chandrasekaran had recently acknowledged their mobile venture was in a “really bad shape” and that a “tough call” would have to be taken on the business in the current financial year.