Tata Teleservices (Maharashtra) won't convert AGR dues into equity

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Tata Teleservices (Maharashtra) board on February 1 decided to not covert the AGR dues into equity as the interest amount eligible for the conversion is much lesser than what the company calculated.

"As the interest amount eligible for conversion is much lesser than as expected and calculated by Tata Teleservices (Maharashtra) , the board of directors of the company, in its meeting held on February 1, 2022, has decided to withdraw the desire expressed for conversion and inform DoT that the company is not desirous of opting for conversion of interest into equity," it said in a statement.

Tata Teleservices (Maharashtra) on January 11 expressed its desire for the conversion of the full amount of such interest related to adjusted gross revenue (AGR) dues into equity, the company said.

The net present value of the interest is expected to be about Rs 850 crore and is subject to confirmation by the Department of Telecommunications.

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 Rs 41.50 per share, subject to a final confirmation by the DoT, the company said.

The DoT in response has informed the company that the NPV of the interest which is eligible for conversion into equity is only Rs 195.22 crore as against company‘s calculation of Rs 850 crore.

The DoT had provided various options for telecom service providers to clear their dues on October 14. They included the deferment of spectrum auction payment dues and AGR-related dues for up to four years. The DoT also said telcos could convert the interest due on deferred spectrum and AGR dues into equity.

A meeting of board of directors of the company is scheduled to be held on February 8, 2022, to consider and approve the financial results for the quarter and nine months ended December 31, 2021.

In the previous trading session, Tata Teleservices (Maharashtra) shares ended at Rs 142.15, down Rs 7.45, or 4.98 percent on the BSE.