CDMA telecom service provider Tata Teleservices (Maharashtra) plans to raise around $200 million (Rs 1,200 crore) by way of foreign currency convertible bonds.
The company intends to use the proceeds for expansion plans, including rollout of network and services.
Confirming this, Chief Financial Officer S Venkatesan said that the company has passed an enabling resolution to raise around $200 million from foreign investors either through an FCCB or a private placement. This could be done in one or more currencies and tranches.
"As of now, we have don't have any immediate plans to raise the funds. We have a loan commitment of Rs 200 crore (Rs 2 billion) from various financial institutions and enough funds for our expansion plans. But with the board approval in hand, we will look at raising the amount at an appropriate time," he said.
During the company's annual general meeting in August, group chairman Ratan N Tata said that a Rs 500 crore (Rs 5 billion) corpus has been earmarked as TTML's capex for the year.
This would be used for expansion plans in Mumbai and Maharashtra circles, increasing the value-added services and bringing in new handsets, Tata added.
The company was planning to increase its subscriber base from the current 2.1 million to over 3 million by the year-end.
TTML provides CDMA services in Maharashtra, while the remaining circles of the country are covered by sister concern Tata Teleservices. TTML is listed on the bourses, while TTSL is an unlisted company.
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