Indian conglomerate Tata Group is reported to be preparing a Rs40bn (US$646m) capital injection into its subsidiary Tata Teleservices after the mobile operator failed to secure financing from banks.
The parent will provide two convertible loan…
Indian conglomerate Tata Group is reported to be preparing a Rs40bn (US$646m) capital injection into its subsidiary Tata Teleservices after the mobile operator failed to secure financing from banks.
The parent will provide two convertible loan instruments to the telco – Rs25bn now and then Rs15bn in a few months – but the exact terms have not been set, a source told The Economic Times.
Banks had declined to renew Teleservices loans until it could fund its annual losses, the report said. The financing is not designed to be used in India’s frequency auction in January.
Minority shareholders Japan’s NTT Docomo and Singapore’s Temasek are not involved in the capital injection. Therefore if Tata converted the debt, their stakes could be reduced.
NTT Docomo is reportedly considering exiting the company next year.
