Tata Sons agrees to compensate DoCoMo for exiting JV: TTML up 15 per cent

In a deal which is likely to be announced later on Tuesday, the holding company of the Tata Group, has agreed to compensate USD 1.17 billion to Japan's NTT DoCoMo, after their long-standing dispute reached to a conclusion. The two parties have opted for an out-of-court settlement. Following this, Tata Sons has also withdrawn its application against DoCoMo in the Delhi High Court. 

However, the Reserve Bank of India (RBI) does not seem to be convinced for such settlement. RBI is of the view that a fix rate of return for exit from the joint venture makes the terms unacceptable. The apex bank has also opposed to the payout, claiming that the existing clause in the joint venture agreement is illegal, to which Tata Sons has strongly denied. Both Tata Sons and DoCoMo are looking forward to March 8, when RBI is scheduled to review the case. 

Meanwhile, TTML stock has been showing a very positive bias since this morning clocking over 15 per cent rise till the time of filing this report at 1210 hours. TTML is being transacted on NSE at Rs 7.80, higher by 15.2 per cent and the stock also has witnessed a huge volume transaction.