India's Tata Teleservices gains 5% as co drops equity conversion plan

Tata Teleservices (Maharashtra)

02/02/2022 06:01

** Shares of telecom services provider  TTML.NS  rise as
much as 5% to 148.80 rupees, hitting the upper circuit
    ** Co said on Tuesday it had decided to withdraw its desire
for conversion of interest due on govt dues into equity
 urn:newsml:reuters.com:*:nFWN2UC0K1
    ** Co said the Department of Telecom had informed that net
present value of interest, eligible for conversion into equity,
1.95 bln rupees ($26.08 mln) against co's calculation of 8.50
bln rupees 
    ** TTML said it decided to withdraw as the amount was much
lower than estimated
    ** Co in Jan said its board expressed desire for conversion
of full amount of interest related to govt dues for spectrum
into equity  urn:newsml:reuters.com:*:nL4N2TS15H
    ** The conversion would have resulted in dilution for all
existing shareholders of co
    ** India's telecom sector was disrupted by the entry of
billionaire Mukesh Ambani's Reliance Jio  RELI.NS  in 2016,
forcing some rivals out of the market
    ** The sector's troubles have also been compounded by the
huge dues owed to the govt
    ** About 3.4 mln TTML shares change hands vs the 30-day avg
of 1.8 mln
    ** TTML shares, which gained more than 20x in 2021, are down
27.9% so far this year


($1 = 74.7700 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))