NEW DELHI: Tata Tele services on Tuesday canceled the plan to convert its statutory debt to equity in the name of the government. The company last month said it planned to allocate 9.5 percent of the total outstanding shares of the company to the government.
The company said it communicated its plan to the Department of Telecommunication (Dot). The firm also forwarded its estimate of the Net Present Value (NPV) of interest on statutory dues amounting to Rs 850 crore. This amount would have been 9.5 percent of the company, at Rs 41.50 per share.
However, the Dot has poured water on its plans.
“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 the interest amount eligible for conversion is much lesser than as expected and calculated by the company, 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 added.
The decision comes after the stock has crashed 51 percent since it first announced its plans, hitting lower circuits every day.
