New Delhi, Oct 14 (PTI) Tata Teleservices (Maharashtra)Ltd (TTML) today said its board will meet on October 18 toconsider a proposal for raising up to Rs 20,000 through issueof preference shares to promoters or via bonds.
The move comes just two days after Tata Group announcedthat the consumer mobile business of TTML as well as that ofTata Teleservices (TTSL) will be taken over by telecom giantBharti Airtel on a debt-free, cash-free basis.
"...a meeting of board of directors of the company isscheduled to be held on October 18 to consider the proposal toraise additional funds up to an aggregate amount of Rs 20,000crore," TTML said in a BSE filing.
It, however, did not specify the purpose for the fundraising. E-mails sent to Tata Teleservices remainedunanswered.
TTML said the fund raise will be done through issue ofone or more types of instruments including redeemablepreference shares to promoters, non-convertible debentures inone or more tranches, and/or inter corporate deposit/loansfrom the promoters and others.
Yesterday, TTML had made a similar filing stating thatits board will meet on October 18 to "consider the proposal toraise additional funds up to an aggregate amount of Rs 6,000crore".
Over 4 crore customers of TTSL and TTML in 19 telecomcircles or zones will be taken over by Airtel from November 1.
Airtel will also get access to 178.5 MHz of spectrum across800, 1800, 2100 Mhz (3G, 4G) bands.
The deal will allow Bharti Airtel to close the gap withsoon to be merged Idea-Vodafone combined entity.
While all of the Rs 31,000-crore debt will remain withthe Tatas, Airtel will assume payment of close to 20 per centof the Rs 9,000-10,000 crore deferred payments for thespectrum to the government. Tatas will pay the rest.
The deal is part of Tata Group's plan to find a solutionfor the troubled mobile business that was weighed down by hugedebt, spectrum liability and monthly cash losses.
Tata Sons Chairman N Chandrasekaran had recently concededthat the groups mobile business Tata Teleservices is in a"really bad shape" and that a "tough call" will have to betaken on the business in this financial year.
In April this year, the Delhi High Court had rejected theReserve Bank of India's objections in the Tata-DoCoMo dispute,clearing the decks for the Tatas to pay over USD 1.1 billionto NTT Docomo in a matter pertaining to the Indian telecomjoint venture. PTI SR MBIMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.