Tata Teleservices (Maharashtra) to raise up to Rs 35,000 crore via equity and debt

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New Delhi | Published: May 31, 2019 3:55:48 AM

While Tata Teleservices did not share details of utilisation of these funds, the company has been exploring various fundraising options to augment the resources of the company.

tata, tata communicationsTata Teleservices Maharashtra’s net debt at the end of March 31, 2018 stood at Rs 16,104 crore, up from Rs 15,620 crore at the end of March 31, 2017, according to Bloomberg data.

Tata Teleservices (Maharashtra) will be seeking shareholders’ approval to raise additional funds of up to Rs 35,000 crore through a mix of redeemable preference shares to the promoters and/or non-convertible debentures (NCDs). The company’s board of directors approved the proposal on Wednesday.
In a notice sent to stock exchanges, the company said that the board of directors of the company have approved the “raising of additional funds through redeemable preference shares to the promoter/s on preferential basis up to an aggregate amount of Rs 15,000 crore and/or non-convertible debentures in one or more tranches up to an aggregate amount of Rs 20,000 crore”.

While Tata Teleservices did not share details of utilisation of these funds, the company has been exploring various fundraising options to augment the resources of the company.

In August 2018 too, the company’s board had approved the proposal to raise an additional amount not exceeding Rs 20,000 crore through issue of non-cumulative redeemable preference shares and/or issue of NCDs and/or acceptance/availing of inter corporate deposits (ICDs)/loans, subject to the approval of the members of the company.

The company had said that the funds raised through one or more options will be utilised primarily for repayment/prepayment of existing debt/loans of the company, including deferred payment liability to Department of Telecommunications (DoT) for spectrum and/or for redemption of the existing redeemable preference shares issued earlier, after meeting the expenditure related to such issue and for general corporate purposes.

Tata Teleservices Maharashtra’s net debt at the end of March 31, 2018 stood at Rs 16,104 crore, up from Rs 15,620 crore at the end of March 31, 2017, according to Bloomberg data.

It is yet to come out with its annual report for the financial year 2018-2019.

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