New Delhi: Tata Teleservices (Maharashtra) on Tuesday said it will opt to convert interest on AGR dues into equity. Post-conversion, the government stake in the company is expected to be around 9.5 per cent.
According to a PTI report, the net present value (NPV) of this interest is expected to be around Rs 850 crore as per the company’s best estimates, subject to confirmation by the DoT, it said in a regulatory filing.
After the conversion, it is expected that the government will hold about 9.5 per cent of the total outstanding shares of the company.
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“…According to the Empowered Committee of the Board of Directors, in its meeting held on January 11, 2022, the Company is expressing its willingness to convert the entire amount of such interest relating to AGR (Adjusted Gross Revenue) arrears. Tata “The interest amount in equity shares and equity shares subject to a mutual agreement on terms and conditions including the governance of the company after changes in various regulatory/legal provisions…” said Teleservices (Maharashtra) in a BSE filing.
The average price of the shares of the Company as on the relevant date of August 14, 2021 is approximately Rs 41.50 per share, as per the calculation method provided in the DoT communication, subject to final confirmation by DoT.
“In case of conversion, it will result in dilution of all existing shareholders of the company, including the promoters,” the filing said.
Earlier on Tuesday, Vodafone Idea had said that it has decided to opt for converting interest liability of around Rs 16,000 crore payable to the government into equity, which will hold around 35.8 per cent stake in the company.
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