Tata Sons, holding company of the Tata group of companies, will invest another '3000 crore into unlisted subsidiary Tata Teleservices Ltd. via the compulsory convertible preference shares (CCPS) route. The board of Tata Teleservices, led by Chairman Cyrus Mistry, approved the CCPS issue on rights basis.
Tata Teleservices, in turn, is expected to invest the funds in BSE-listed Tata Teleservices (Maharashtra) Ltd.'s redeemable preference shares worth a similar amount.
In the past 2 years, Tata Sons have invested Rs.4500 crore in Tata Teleservices' two CCPS issues, so that the company meets its financial obligations to banks. Tata Teleservices own 60 percent stake in the company, while Docomo owns 26.5 percent. The rest is owned by minority shareholders. The conversion of CCPS would increase Tata Teleservices stake.
The Tata Teleservices board also approved the accounts for FY16, which show marginally lower losses than last year. The firm made a loss of Rs.3386 crore on revenue of Rs.10,662 crore for FY16, compared to a loss of Rs.3846 crore on revenues of Rs.10,942 crore reported in FY15.