Tata Teleservices zooms 72% in 3 days
Shares of Tata Teleservices (Maharashtra) (TTML) were locked in upper circuit for the third straight day, up 20% at Rs 4.86 on the BSE on Wednesday as talks of reviving the ailing telecom services provider gathered steam.
The stock of the Tata group telecom services company was trading at its 52-week high. It has zoomed zoomed 72% in the past three days from the level of Rs 2.82 on Friday.
The Tata group is looking at reviving Tata Teleservices by taking the latter’s technical expertise and enterprise solutions for its SuperApp, which is being built.
The Tata SuperApp is expected to bring all the group’s products as well as services under one platform and enable sales to consumers directly. The SuperApp is targeted to be launched by December this year.
As of September 30, 2020, the promoters, Tata Teleservices (48.30%), Tata Sons Private Limited (19.58%) and Tata Power (6.48%) have collectively held 74.36% stake in TTML. While, individual public shareholders hold 22.89% stake in the company, shareholding pattern data shows.
TTML provides telecommunication services to its subscribers in Mumbai and Rest of Maharashtra (including Goa) telecom circles. Tata Teleservices (TTSL) provides telecommunication services in Pan India, except Mumbai, Rest of Maharashtra (including Goa), Jammu & Kashmir, North East and Assam.
TTSL also operates and maintains National Long Distance service network within territorial boundaries of India under license granted by Government of India. TTML and TTSL share certain infrastructure between them to achieve optimum cost of operations and also seamless connectivity as part of offering such services across the Country to their respective subscribers. TTML and TTSL are conducting business under one single brand ‘Tata Tele Business Services’ with no overlapping geographies or conflicting businesses.
TTML has successfully completed the demerger transaction of its consumer mobile business to Bharti Airtel on July 1, 2019. The company in 2019-20 annual report said, the enterprise segment of the telecom business is projected to witness growth in the years to come on the basis of wide optical fiber network of around 132,000 kms. (TTSL+TTML).
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