Tata Teleservices gains 20 per cent on merger approval

The shares of Tata Teleservices (Maharashtra) rose 20 per cent after the National Company Law Tribunal (NCLT) sanctioned a merger between the company and Airtel.

The scheme of amalgamation will take effect after fulfillment of certain conditions. These include Bharti Airtel receiving the obligatory approval of the NCLT to the scheme in question as well as the approval for the scheme from the Department of Telecommunication (DoT).

The merger, which was announced last year, is on a no-debt, no-cash basis. In other words, Airtel will not take over Tata Teleservices’s debt of Rs. 40,000 crore and will not fork over cash.

This is one of the consolidation deals in the Telecom sector wherein over 40 million customers of Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) will join Bharti Airtel.

On Wednesday, the shares of Tata Teleservices (Maharashtra) opened at Rs. 3.89, and hit a high and low of Rs. 4.62 and Rs. 3.89, respectively. At the close of market hours, the stock was trading at Rs. 4.14. up 7.53 per cent.