NEW DELHI: Tata Teleservices (Maharashtra) on Tuesday also decided to opt for conversion of the interest amount on AGR dues into equity. Following conversion, it is expected that the government will hold around 9.5 per cent of the total outstanding shares of the Company.
The company said at its board meeting, held on 11 January, expressed its desire for the conversion of full amount related to AGR into equity. It will communicate its decision to Department of Telecommunications (DoT). The announcement came within hours of Vodafone Idea deciding to opt for converting the interest amount on AGR dues into government equity.
The company expects its Net Present Value (NPV) of this interest to be approx. Rs 850 crore, subject to confirmation by the DoT. The average price of the Company's shares at the relevant date of August 14, 2021 as per the calculation method provided in the DoT Communication works out to be ~ Rs 41.50 per share, subject to final confirmation by the DoT.
"In case of conversion, it will result in dilution of all the existing shareholders of the Company, including the Promoters. Following conversion, it is expected that the Government will hold approx. 9.5 per cent of the total outstanding shares of the Company," said the company.
The total Adjusted Gross Revenue (AGR) dues stood at Rs 16,798 crore, of which the company has already made payment to the tune of Rs 4,197 crore. On Oct 29, 2021, the company had said that it will avail the option for deferment of AGR-related dues by a period of four years with immediate effect.
The shares of Tata Teleservices (Maharashtra) closed at Rs 291.05 apiece on BSE, 5 per cent higher than the previous close, on Tuesday.