Tata Tele locked in 5% lower circuit as company opts for equity conversion of AGR interest dues
On Thursday, for a second consecutive session, shares of Tata Teleservices were locked at a five percent lower circuit. Earlier, on Tuesday, the company had decided to opt for conversion of the interest from adjusted gross revenue (AGR) dues into equity.
Tata Teleservices deals in broadband, telecommunications, and cloud services.
Post conversion of dues into equity, the Centre is expected to hold a 9.5 percent stake in the company, it said in a regulatory filing on Tuesday. The company’s shares settled five percent down on Thursday at Rs.261.9.
On the same day — Tuesday, Vodafone Idea too approved the conversion of its adjusted gross revenue (AGR) and spectrum liabilities into equity and said that the Centre would hold around 35.8 percent stake in the company.
The conversion, however, will be subject to a mutual agreement on the terms and conditions, including the governance of the company post-conversion of the interest amount into equity shares, it added in the same filing.
Following the announcement, its shares declined nearly 20 percent on Tuesday, while subsequently, they rebounded sharply on Wednesday as the telecom company clarified that the Centre would not participate in the management of the company as well as not take over the operations.
Notably, on Thursday, the Vodafone Idea shares traded steadily at Rs.12.8 per share.
Shares of TTML have surged 473% in three months, 524% in six months, and whooping 2712% in the last one year as on January 12, 2022, showed technical data of the telecom share.
Manoj Dalmia, founder, and director, Proficient equities Private limited, said TATA Teleservices has given about 3000% return in the last year, but this rally might stop.
“There is a lot of speculation around this stock daily hitting upper and lower circuits. We might expect the stock to hit the lower circuit as it will create a panic. Tata Teleservices has an AGR due of Rs.16798 crore, out of which Rs.4197 crore has been paid. The initiative seems good as converting such debts is beneficial for both government and company,” said Dalmia.
[With Inputs from IANS]
PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views
For all the latest updates, download PGurus App.
- US economy regains speed: GDP grows 6.9% in fourth-quarter - January 28, 2022
- Tamil Nadu BJP envisages snapping ties with AIADMK in urban local body polls - January 28, 2022
- Tata Sky changes its name to Tata Play; enters into OTT platform - January 28, 2022