Latest News | TTML to Convert Interest on AGR Dues into Equity; Govt Holding Seen at 9.5 Pc

New Delhi, Jan 11 (PTI) After Vodafone Idea, Tata Teleservices (Maharashtra) on Tuesday said it will opt for conversion of the interest related to AGR dues into equity and that post-conversion, the government holding is expected to be about 9.5 per cent in the company.

The net present value (NPV) of this interest is expected to be nearly Rs 850 crore as per the company's best estimates, subject to confirmation by the Department of Telecom, it said in a regulatory filing.

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Post conversion, it is expected that the government will hold about 9.5 per cent of the total outstanding shares of the company.

"...pursuant to the Empowered Committee of the Board of Directors, at its meeting held on January 11, 2022, the company is expressing its desire for the conversion of the full amount of such interest related to AGR (Adjusted Gross Revenue) dues into equity subject to a mutual agreement on the terms and conditions, including, the governance of the company post-conversion of the interest amount into equity shares and various regulatory/legal provisions...," Tata Teleservices (Maharashtra) said in a BSE filing.

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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 about Rs 41.50 per share, subject to final confirmation by the telecom department.

"In case of conversion, it will result in dilution of all the existing shareholders of the company, including the promoters," the filing said.

Earlier on Tuesday, Vodafone Idea (VIL) had said it has decided to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity, which will amount to around 35.8 per cent stake in the company.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)