The Hindu Business Line : Tata Tele (Maha) plans to raise Rs 1,700 cr through debt, equity

Mr Firdose A. Vandrevala, Chairman, Tata Teleservices (Maharashtra) Ltd (right), with Mr N.S. Ramachandran, Director, at the company's AGM held in Mumbai on Tuesday. - Paul Noronha

Mumbai , Aug. 10

TATA Teleservices (Maharashtra) Ltd (TTML) has an estimated funding requirement of Rs 1,700 crore for its new expansion plans for the next couple of years.

Half of this would be raised by way of debt and the other half by way of equity, said Mr Vivek Sett, Chief Financial Officer.

Already, debt amounting to Rs 600 crore has been raised by way of issue of foreign currency convertible bonds of $125 million in June this year.

The rest of the debt - amounting to Rs 200-250 crore will be raised from the existing lenders, he said.

The equity component of around Rs 850 crore would be managed through a rights issue "at the appropriate time".

TTML achieved financial closure in September 2003 for its initial business plan with a project cost of Rs 3,380 crore, of which Rs 3,000 crore was spent till March 2004, according to the Chairman's statement at the AGM on Tuesday.

The prepaid services of the company will be launched during the current quarter. The company also plans to introduce push-to-talk services shortly in Mumbai, something Tata Teleservices Ltd (TTSL) has launched in Bangalore already.

With the capital expenditure plan for this year, the company intends to expand operations from its current base of 20 towns to over 150 towns and cities in Maharashtra and Goa by the end of the year.

All-India roaming too would be provided by the end of the current fiscal when Tata Teleservices commences services in major cities and towns progressively from November this year, in the additional 12 telecom circles for which it has procured licences.