To get over Rs 900cr via tower stake sale: TTML

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To get over Rs 900cr via tower stake sale: TTML

Mukund Govind Rajan, Managing Director of TTML, the company will see an inflow in excess of Rs 900 crore. “We will use proceeds for debt repayment and network rollout.”

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS To hold 12% stake in Quippo post merger: SREI TTML sells tower arm to Quippo-WTTIL for over Rs 1,300cr ALSO READ See latest News about TataTeleservice See previous management interviews See what other Experts & Brokerages are saying about TataTeleservice TataTeleservice BSE | NSE 10/02/12 Are Mutual Funds betting on TataTeleservice?

Tata Teleservices (Maharashtra) Limited has sold its tower business for over Rs 1,300 crores. It sells its tower subsidiary to Quippo-WTTIL at Rs 52 lakh per tower.

According to Mukund Govind Rajan, managing director of TTML, the company will see an inflow in excess of Rs 900 crore. "We will use proceeds for debt repayment and network rollout."

Below is a verbatim transcript of the interview. Also watch the video.

Q: What do you do to plan to do with the money?

A: Multiple uses are possible. In the immediate short-term, we will seek to pay off some our debt and lower our interest burden. Some of it can be used for our ongoing investment including in our GSM network rollout. We are anticipating the 3G auctions that will take place in the middle of April. Some of that could be deployed towards supporting if a bid is successful.

Q: A little more about the TTML subsidiary itself. It had committed to rollout 4,000 towers over the next 5 years. Do you have any obligations towards this rollout? Do you have to spend any money? Do you get any money?

A: No. These are just commitments in terms of our offering to take up tenancy in these towers as they get rolled out over the next 5 years.

Q: You said that this Rs 900 crore could be used to pay off some debt as well. What is your net debt now and what do you see it in a quarter from now.

A: I can't be sure in terms of what the debt position would be subject to what happens with the 3G auction. At the end of the last quarter our debt was around Rs 3,400 crore.