Tata Teleservices [TTML] in lower circuit Why?

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Tata Teleservices (Maharashtra) has been locked in at Rs 276.50 for eight consecutive sessions.

From its recent closing high of Rs 291.05 recorded on 11 January 2022, the stock has declined 33.62% in eight sessions.

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TTML Stock

TTML Stock News

Tata Teleservices (Maharashtra) announced on 11 January 2022 that it will convert the interest due to it on adjusted gross revenue (AGR) via equity.

According to the company’s best estimates, the net present value of this interest will be approximately Rs 850 crore, subject to confirmation by the Department of Telecom (DoT).

As per the calculation method provided in the DoT communication, the average price of the company’s shares as of 14 August 2021 is about Rs 41.50 per share, pending final confirmation by the DoT.

This would result in a dilution of all existing shareholders, including the promoters, according to the filing.

TTML Stock Government Holding

As a result of the conversion, the government will hold approximately 9.5% of TTML’s total outstanding shares.

In connection with the Telecom Reforms Package, the DoT had provided telcos with various options last year. In the AGR case, it offered a one-time option to defer AGR-related dues for a period of four years with immediate effect, as determined by the Supreme Court. Additionally, it provides a one-time opportunity to convert the NPV of the interest amount of the deferred AGR dues into equity by way of paying interest for the 4 years of deferment.

TTML Quarter Result

The loss for Q2 September 2021 was Rs 313.63 crore, compared to Rs 341.19 crore in Q2 September 2020. From Q2 September 2020 to Q2 September 2021, net sales increased by 4.72% to Rs 268.77 crore.

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