Tata Tele Maharashtra Approves Raising Rs 20,000 Crore Additional Funds
Tata Teleservices Ltd.’ Maharashtra unit will raise Rs 20,000 crore by issuing securities through various modes, days after India’s largest telecom operator Bharti Airtel Ltd. announced it will take over Tata’s consumer mobile business in a debt-free, cash-free merger.
The board approved raising funds through issuing securities in the form of either redeemable preference shares to promoters or non-convertible debentures in one or more tranches, according to a stock exchange filing. It may also issue inter corporate deposits, loans and commercial papers to the promoters, the filing added.
Last week, Bharti Airtel agreed to take over the struggling mobile services business of Tata Group as low tariffs and rising debt continued to drive consolidation in India’s telecom space. However, the deal will not see Bharti Airtel takeover Tata’s debt except for some spectrum liabilities.
Tata Group’s telecom debt stands at Rs 40,260 crore, of which Tata Teleservices (Maharashtra) Ltd. pile is around Rs 17,000 crore. The two units had combined losses of Rs 38,175 crore as of March.