Tata Teleservices scrip dials p for profits; holding company to infuse capital

The shares of Tata Teleservices have surged over 5 per cent on July 5 on the news that the holding company Tata sons will likely infuse Rs 3,000 crores in Tata Teleservices. The shares which were neglected by the large chunk of investors has suddenly got investors’ attention. The shares in the last 5 days have gained over 8 per cent. However, the interesting part in the last two days is that the share gained over 6 per cent, which means the gaining spree is just 2 days old.

However, the company has not given any clarification to the exchanges. The exchange has sought clarification from the company with reference to the news in Business Standard "Tata Sons to pump Rs 3,000 crores into Tata Teleservices."

The company had reported a loss of Rs 3,386 crores on revenue of Rs 10,662 crore for FY16, compared to a loss of Rs 3,846 crore on revenues of Rs 10,942 crore reported in FY15.The Tata’s own 60 per cent stake in the company, while Docomo owns 26.5 per cent. The rest is owned by minority shareholders. 

Tata Teleservices Maharashtra Limited., (TTML) belongs to Tata Group. The company is engaged in the telephony sector in the telecom circles of Maharashtra (including Mumbai) and Goa. The company also has a significant presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the Tata DOCOMO brand name. 

As at 11.03 am, the shares are trading at Rs 7.27 and have gained by 5.67 per cent on an intraday basis. The stock's 52 week High/Low stand at Rs 9.40/5.73.