NEW DELHI: Debt-ridden telecom firm Tata Teleservices Maharashtra on Friday received approval from its board to raise an additional Rs 20,000 crore through debt instruments.
According to the firm, the fundraising will be done either by issue of securities, instruments etc., including redeemable preference shares to promoters on preferential basis, non-convertible debentures or inter-corporate deposit or loans from the promoters or other entities. Parent firm Tata Teleservices (TTSL) currently has dues of around Rs 10,000 crore to be paid to the Department of Telecom (DoT).
TTSL is also in the process of merging its mobile service business with Bharti Airtel and will need to clear dues before the DoT takes merger on record.
The company, whose accumulated losses have exceeded its paid-up capital and reserves, had said in a regulatory filing that it has secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt.