At a time when most telecom companies are showing signs of revival, Tata Teleservices and Aircel have reported negative net worth. According to numbers put out by the Department of Telecom, Aircel has a net worth of minus ₹4,198 crore, Tata Tele’s net worth is at minus ₹5,346.65 crore.
In comparison, market leader Bharti Airtel’s net worth has been pegged at ₹61,221 crore while new player Reliance Jio has a net worth of over ₹5,000 crore.
The lower net worth of Aircel and Tata Tele could make them a possible target for acquisitions as consolidation rings in the telecom sector. Market buzz suggests that there a number of suitors for Aircel and Tata Tele, including Vodafone and Sistema Shyam. But sources close to the two companies said the numbers put out by DoT does not reflect the true picture as it does not take into account quasi-equity infused by the promoter company.
Aircel’s Malaysian owner, for instance, had recently infused ₹6,000 crore to fund its interest outgo. Aircel had a debt of around ₹20,000 crore and had reported losses of ₹11,500 crore in 2012.
Similarly, Tata Sons had infused ₹2,400 crore into Tata Tele this month even as its accumulated losses are estimated to be about ₹6,500 crore for 2012-13.