New Delhi: After the idea of ​​Vodafone, Tata Teleservices (Maharashtra) on Tuesday said that he would choose the conversion of the number of interest in AGR contributions into the equity and post-conversion, the government in the company was estimated at around 9.5 percent.
Announcement of Tata Teleservices (Maharashtra) came in a few hours from the idea of ​​Voda also decided to choose to change the number of interest in AGR contributions into government equity.
In submission to BSE, Tata Teleservices (Maharashtra) said the current net value or interesting NPV is expected to almost Rs 850 Crore according to the company’s estimates, subject to confirmation by the Telecom (DOT) department.
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Based on the Board of Directors Committee empowered, at his meeting held on January 11, 2022, the company expressed his desire for the conversion of the full number of interest related to AGR contributions into the agreement on the terms and conditions,” the archiving said.
These conditions include those related to corporate governance after the conversion of the number of interest into equity stocks and various regulatory / law provisions, he added.
The company will communicate the decision for dot.
“After conversion, the government is expected to accommodate around 9.5 percent of the total stock of companies circulating,” he said.
The average company of the company’s shares on the relevant date of August 14 2021 In accordance with the calculation method provided in DOT communication work around Rs 41.50 per share, subject to final confirmation by Dot, according to the archiving.
According to archiving, if a conversion occurs, it will produce a dilution of bets of all shareholders in the company, including the promoters.
Previously, DOT had provided a period of telcos for 90 days to train the option to change the interest that would increase in installment payments during the moratorium period into equity.
As in September 2021, the promoter and promoter group had around 74.36 percent of shares in the company while public share ownership was pegged at 25.64 percent, according to Availabe data on the BSE website.
On Tuesday, the shares of Tata Teleservices (Maharashtra) were closed at RS 291.05 each at BSE, 5 percent higher than the previous closure.
The gross income contribution (AGR) which is adjusted to the company reaches RS 16,798 Crore, where the company has made a payment to RS 4,197 Crore tone.
On October 29, 2021, the company has stated that it will utilize the option of suspension of contributions related to the AGR in a period of four years with direct effects.
Vodafone IDE LTD (VIL) has also decided to choose to convert around RS 16,000 Crore Fee contributions paid to the government to equity which will amount to around 35.8 percent of shares in the company.
If the plan passes, the government will become the largest shareholder in a company that is shaken under the debt load around Rs 1.95 lakh Crore.
Last week, Bharti Airtel telecommunication operators explained that it would not take advantage of the interest conversion option in the suspended spectrum and AGR contributions for equity offered under the reform package.
The telecommunications sector has received a shot in the arm with the government last year approved the Relief Blockbuster package which includes a four-year break for the company from paying law contributions, permission to share rare air waves, changes in revenue definitions where paid and 100 percent foreign investment through routes automatic.
The government has also provided the Telcos option to convert the number of interest associated with the moratorium period into equity.
In a note on the vil on Tuesday, CLSA said that even after being relieved, the company would likely “struggle” to fund the annual spectrum payment outside the additional four-year moratorium except the ARPU (average income per user) reached Rs 250-300.
“At the end of a four-year moratorium, there will be an option to change the main contribution to equity, at the government’s discretion,” observed.
Credit Suisse, in a report, said the calculation showed that the VIL cash flow situation would “keep stretching” even after a four-year moratorium with companies that require continuous equity injections without continuous operational improvement.