This telecom stock has hit the upper circuit for 14th straight trading day

Illustration by binay sinha
Shares of Tata Teleservices Maharashtra (TTML) were locked at the 5 upper circuit for the 14th straight trading session, up 5 per cent at Rs 129.45, also its new high on the BSE on Friday. The Tata Group telecom services stock has nearly doubled or up 97 per cent from level of Rs 65.70 on November 12, 2021.

In the past two months, the stock price of TTML zoomed 270 per cent, as compared to 0.62 per cent rise in the S&P BSE Sensex. Till 10:52 am; a combined 1.62 million shares changed hands and there were pending buy orders for 10.32 million shares on the NSE and BSE.

On clarification of increase in volume, TTML on November 29 said that we would like to submit that we have always promptly intimated of any events, information, etc. required to be disclosed under regulation 30 of the Securities and Exchange Board of India and will continue to do so in future as and when any such event or information occurs in the company. At this stage there is nothing further to disclose, the company said.

As of September 30, 2021, Tata Group companies held a combined 74.36 per cent holding in TTML, of which Tata Teleservices held 74.36 per cent stake, followed by Tata Sons (19.58 per cent) and Tata Power Company (6.48 per cent), shareholding pattern data shows. Individual shareholders held 23.22 per cent holding in the company.

Tata Teleservices (TTSL), along-with its subsidiary Tata Teleservices (Maharashtra), is a growing market leader in the Enterprise space. It offers a comprehensive portfolio of voice, data and managed services to enterprises and carriers in the country under the brand name Tata Tele Business Services (TTBS).

For first half (April-September) of the financial year 2021-22 (H1FY22), TTML had narrowed its net loss to Rs 632 crore from Rs 1,410 crore during the same period of FY21. The company's current liabilities exceeded its current assets as on September 30, 2021.

While announcing Q2 results on November 10, TTML said that it has obtained a support letter from Its promoter indicating that the promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date. "Based on the above, the company is confident of its ability to meet the funds requirement and to continue its business as a going concern," TTML said.

The company has also projected to witness growth in the years to come on the basis of wide optical fiber network of ~132,000 kms (TTSL+TTML), as the company has strong brand presence across customers in this business with deep customer relationships.

According to report, Tata Sons, the holding company of Tata Group, has submitted a letter of comfort to lenders of Tata Teleservices (TTSL) to meet any obligations of the telecommunications (telecom) company. The guarantee to its unlisted subsidiary was given in September just before the Union government decided to offer a four-year moratorium to the company to pay its past adjusted gross revenue (AGR) dues worth Rs 14,000 crore, said a banking source, the newspaper reported. CLICK HERE FOR FULL REPORT

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel