Tata Teleservices Update: After Vodafone Idea, the board of Tata Group’s telecom company Tata Teleservices also decided to convert the entire interest amount of the AGR (Adjusted Gross Revenue) dues into equity (shares). But have put their stamp on it. With this decision of Tata Teleservices, the Government of India will now hold 9.5 percent stake in the company. The company owes the government Rs 850 crore on account of interest on AGR (Adjusted Gross Revenue).
Tata Teleservices has informed the stock exchanges about this decision of the company. According to Tata Teleservices, in the meeting of the company’s board on January 11, 2022, it has been decided to convert the interest amount due on the account of AGR into equity. Tata Teleservices is converting the outstanding amount into equity and giving 9.5 percent shares to the Government of India at the rate of Rs 41.50 per share. The Department of Telecommunications will put its final seal on this decision. Shares of Tata Teleservices closed at Rs 290 on Tuesday.
Earlier, the board of Vodafone Idea also decided to convert the installments of spectrum payment dues to the Government of India and the entire interest amount of the outstanding AGR (Adjusted Gross Revenue) into equity (shares) on this. stamped.
After this decision of the board of Vodafone Idea, the stake of all the shareholders in the company will decrease. After this decision, the Government of India’s stake in Vodafone Idea will be 35.8 percent. At the same time, the stake of the company’s promoter Vodafone Group (Vodafone PLC) will be around 28.5 percent and that of Aditya Birla Group will be 17.8%. The Board of Vodafone Idea has given its approval to the Government of India for the payment of spectrum due installments and the entire interest amount of the outstanding AGR (Adjusted Gross Revenue) to be converted into equity (shares) Is.
Vodafone Idea has informed the stock exchanges about this decision taken in its board meeting held on Monday. The total amount of interest on spectrum and AGR dues i.e. Net Present Value (NPV) is estimated to be around Rs 16,000 crore, which is yet to be approved by the DoT. Vodafone Idea will allot shares to the Government of India at a face value of Rs 10 to the Government of India. After the approval of the Department of Telecommunications, the Government of India’s stake in Vodafone Idea will be close to 36 percent, which is more than the promoter of the company.
Help to overcome financial crisis
In fact, to get out of the financial crisis of the telecom companies, the government had given them the option to convert the spectrum dues and the interest of the AGR dues into equity. Bharti Airtel did not accept this offer of the government but Vodafone Idea and Tata Teleservices have agreed to convert the interest amount into equity.
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