Tata Teleservices (Maharashtra)shares surged 20 percent intraday Wednesday after the approval from National Company Law Tribunal for merger with Airtel.
The National Company Law Tribunal has sanctioned the Scheme of Arrangement amongst Tata Teleservices (Maharashtra) and Bharti Airtel and their respective shareholders and creditors, the Tata Group firm said.
The scheme will be given effect to after and subject to fulfillment of certain conditions including Bharti obtaining the necessary approval of the NCLT, to the said Scheme and the approval of the Scheme by the Department of Telecommunication (DoT), it added.
In August, shareholders of Bharti Airtel approved the merger of the mobile business of Tata Teleservices (Maharashtra) with the company.
The debt-ridden loss making firm Tata Teleservices and Bharti Airtel had announced the merger last year. The deal is on a no-debt, no-cash basis, implying Airtel is not taking over any of the about Rs 40,000 crore debt of Tata Teleservices and is neither paying any cash.
The deal will see over 40 million customers of Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) joining Bharti Airtel and mark further consolidation in one of the world’s largest telecom markets.
At 15:10 hours IST, the stock was quoting at Rs 4.18, up Rs 0.33, or 8.57 percent on the BSE. – Moneycontrol