A meeting of board of directors of the company is scheduled to be held on February 8, 2022, to consider and approve the financial results for the quarter and nine months ended December 31, 2021.
Tata Teleservices (Maharashtra) share price is locked at 5 percent upper circuit in the early trade on February 2 after the company decided to withdraw the plan to convert its AGR dues into equity.
There were pending buy orders of 7,768,842 shares, with no sellers available.
“As the interest amount eligible for conversion is much lesser than as expected and calculated by Tata Teleservices (Maharashtra), 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,” it said in a statement.
Tata Teleservices (Maharashtra) on January 11 expressed its desire for the conversion of the full amount of such interest related to adjusted gross revenue (AGR) dues into equity, the company said.
The net present value of the interest is expected to be about Rs 850 crore and 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 a final confirmation by the DoT, the company said.
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The DoT in response has informed the company that the NPV of the interest which is eligible for conversion into equity is only Rs 195.22 crore as against company‘s calculation of Rs 850 crore.
The DoT had provided various options for telecom service providers to clear their dues on October 14. They included the deferment of spectrum auction payment dues and AGR-related dues for up to four years. The DoT also said telcos could convert the interest due on deferred spectrum and AGR dues into equity.
A meeting of board of directors of the company is scheduled to be held on February 8, 2022, to consider and approve the financial results for the quarter and nine months ended December 31, 2021.
At 09:17 hrs Tata Teleservices (Maharashtra) was quoting at Rs 149.25, up Rs 7.10, or 4.99 percent on the BSE.
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