TTML AGR DUES: Tata Teleservices (Maharashtra) withdraws Govt equity conversion plan
TTML AGR DUES: The decision of not to convert AGR debt into equity has been made by Tata Teleservices (Maharashtra) Ltd on Tuesday. The company said that the interest amount eligible for such conversion has turned out far less than what they had initially calculated, leading them towards cancelling this plan entirely.
Leading Telco has said that the amount to be converted – Rs 195.22 crore as per calculations by government, it is much lesser than what they had estimated, Rs 850 crore.
“As the interest amount eligible for conversion is much lesser than as expected and calculated by the company, the Board of Directors of the company, in its meeting held on February 1, 2022 has decided to withdraw the desire expressed for conversion and inform DoT that the Company is not desirous of opting for conversion of interest into equity,” said the telco in a regulatory statement on Tuesday.
Let us tell you, TTML had initially decided to go for conversion of interest on AGR dues into equity and had also communicated its decision to the telecom department.
Last month, it was reported that Tata Teleservices (Maharashtra) would be opting for conversion of the interest amount owed on AGR dues into equity and after post-conversion government will hold around 9.5% stake in the company.
The telecom sector was given a shot in the arm last year when it received approval from government, with permission to share scarce airwave plans and an end-ofyear break from paying statutory dues. The four year relief package also included changes that will allow firms more time without having their taxes taken away as well as allowing 100 percent foreign investment through automatic route.
Let us tell you, The government had also offered telcos the option to convert interest amounts pertaining their moratorium period into equity.
(With Agency Inputs)
