Tata Teleservices (Maharashtra) Ltd, which is a subsidiary of Tata Group, has approved the conversion of its deferred Adjusted Gross Revenue (AGR) into equity shares, the company notified in a regulatory filing on Tuesday.
According to the regulatory filing, it is expected that the government will hold approximately 9.5% of the total outstanding shares of the company. The Net Present Value of this interest is expected to be approximately Rs 850 crore which is subject to confirmation by the Department of Telecommunications.
“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 ~Rs. 41.50 per share, subject to final confirmation by the DoT. In case of conversion, it will result in dilution of all the existing shareholders of the Company, including the Promoters,” the company said in the regulatory filing.
Notably, according to the BSE, as of September 2021, the promoters held a 74.36% stake in the company’s equity, whereas Public held a 25.64% stake in the company’s equity.
The development comes the same day when Vodafone Idea approved the conversion of its AGR dues into equity. The government will now own a 35.8% stake in Vodafone Idea.
