Tata Teleservices Limited to raise Rs 100 billion through CCPSs

Tata Teleservices Limited (TTSL) has obtained shareholder consent to double its authorised capital from Rs 200 billion to Rs 400 billion and raise up to Rs 100 billion through compulsorily convertible preference shares (CCPSs) on a rights basis, with a view to clean up its balance sheet. The CCPSs will eventually be converted into equity shares at a fair market value determined on the date of conversion. The option to convert will accrue within three months of the allotment of the CCPSs, but not later than three years from the date of allotment. TTSL currently has a debt of Rs 300 billion.