Indian mobile telecom service provider Tata Teleservices Maharashtra (TTML) will ask shareholders to approve plans to raise up to INR 50.00 billion (USD 663.01 million).
The proposed capital increase, if it goes ahead, would be be the seventh largest by an Indian company announced so far this calendar year, according to Zephyr, the M&A database published by Bureau van Dijk.
Zephyr shows Reliance Industries accounts for the biggest to date after announcing a right issue worth INR 531.25 billion at the end of April.
TTML noted the proposed issue could comprise the sale of redeemable preference securities to promoters on a preferential basis and/or non-convertible debentures in one or more tranches.
Shares in the Mumbai-based company were up by 4.9 per cent at INR 2.78 and a capitalisation of INR 5.44 billion by 12:56 local time today (28th May: close of INR 2.65).
Its market price has fluctuated between a 52-week high of INR 5.27 and a low of INR 1.80
TTML delivers mobile connectivity and integrated telecom services to consumers in Mumbai and Maharashtra to help expand digital inclusion across India.
Its offering covers wireline and wireless networks global system for mobile communications, code-division multiple access (CDMA) and 3G platforms, according to its website.
TTML claims to be one of the most reliable telecom service providers for integrated voice and data services and is also a key player in mobile data usage segment.
Additionally, the company commands significant customer loyalty in the large screen data space with its Tata photon family of CDMA, 3G and Wi-Fi products.
In non-voice services, it provides e-governance, machine-to-machine and m-remittance services.
TTML generated INR 8.19 billion in unaudited revenue from operations in the nine months ended 31st December 2019 and incurred a total comprehensive loss of INR 12.47 billion for the period.
© Zephus Ltd