After Vi, TTML to convert interest amount on AGR dues into equity
New Delhi: After Vodafone Idea, Tata Teleservices (Maharashtra) on Tuesday said it will opt for conversion of the interest amount on AGR dues into equity and post-conversion, the government's holding in the company is expected to be around 9.5 per cent.
The announcement of Tata Teleservices (Maharashtra) came within hours of Voda Idea also deciding to opt for converting the interest amount on AGR dues into government equity.
Earlier in the day, debt-ridden Vodafone Idea (VIL) decided to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity which will amount to around 35.8 per cent stake in the company, as per a regulatory filing of the telecom firm.
In a filing to the BSE, Tata Teleservices (Maharashtra) said Net Present Value or NPV of interest is expected to be nearly Rs 850 crore as per the company's estimates, subject to confirmation by the Department of Telecom (DoT).
"... pursuant to the Empowered Committee of the Board of Directors, at its meeting held on January 11, 2022, the company is expressing its desire for the conversion of the full amount of such interest related to AGR dues into equity subject to a mutual agreement on the terms and conditions," the filing said.
The conditions include those related to the governance of the company post-conversion of the interest amount into equity shares and various regulatory/legal provisions, it added. The company will communicate the decision to the DoT.
"Following conversion, it is expected that the government will hold approximately 9.5 per cent of the total outstanding shares of the company," it said.
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 about Rs 41.50 per share, subject to final confirmation by the DoT, as per the filing.
According to the filing, in case of conversion, it will result in dilution of stakes of all the existing shareholders of the company, including the promoters.
