The shares of Tata Teleservices Maharashtra (TTML) were locked in the 5 per cent upper circuit on Wednesday after the company announced its decision to withdraw its plans for converting interest related to adjusted gross revenue (AGR) dues into equity in the name of the government.
TTML opened at ₹149.25 on the BSE, up ₹7.10 or 4.99 per cent as against the previous close of ₹142.15 and was locked in the 5 per cent upper circuit post-opening.
On the NSE, it was trading at ₹148.80, up ₹7.05 or 4.97 per cent.
“As the interest amount eligible for conversion is much lesser than expected and calculated by the company, the Board of Directors , 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,” a notice from TTML said on Tuesday.
The Government will not be able to pick up any stake in TTML. Earlier, the Government was to pick up a 9.5 per cent stake in the company, after telecom firms opted for the government’s relief measure of converting the interest on AGR (adjusted gross revenues) dues into equity.
Earlier, the company had calculated its dues to be around ₹850 crore, but with the DoT saying it owes only ₹195 crore, the company has decided to pay the dues in cash.