has opted to convert the interest on spectrum and adjusted gross revenue (AGR) dues into equity, becoming the second company to do so after Vodafone Idea. The government will own about 9.5% stake in the telco.
“… the Company is expressing its desire for the conversion of the full amount of such interest related to AGR Dues into equity subject to mutual agreement on the terms and conditions, including, the governance of the Company post conversion of the interest amount into equity shares and various regulatory/legal provisions including Section 62(4) and Section 53 of the Companies Act. The Company will communicate the foregoing to the DoT,” said the telco in a statement on Tuesday.
The Net Present Value (NPV) of this interest is expected to be approx. Rs.850 crore as per the Company’s best estimates, subject to confirmation by the DoT, Tata Tele informed the exchanges.
“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 around Rs. 41.50 per share, subject to final confirmation by the DoT,” the company said.
Tata Teleservices has AGR dues of Rs 16798 crore of which it has paid Rs 4,197 crore and had opted for the 4-year AGR and spectrum payment moratorium. “Following conversion, it is expected that the Government will hold approx. 9.5% of the total outstanding shares of the Company”,said the operator.
Shares of Tata Teleservices closed at Rs 291.05, up by 5% on the BSE on Tuesday.
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