Tata Teleservices (Maharashtra) rose 1.80% to Rs 10.20 at 15:25 IST on BSE, extending Wednesday's 20% rise triggered by reports that the company's parent will be allowed to pay more than a fair price to buy out NTT Docomo Inc's stake.
Meanwhile, the BSE Sensex was up 782.68 points, or 2.86%, to 28,129.50.
On BSE, so far 46.98 lakh shares were traded in the counter, compared with an average volume of 5 lakh shares in the past one quarter.
The stock hit a high of Rs 11.19 and a low of Rs 10.05 so far during the day. The stock hit a 52-week high of Rs 14.05 on 7 July 2014. The stock hit a 52-week low of Rs 6.80 on 17 February 2014.
Shares of Tata Teleservices (Maharashtra) (TTML) hit an upper circuit limit of 20% to Rs 10.02 on Wednesday, 14 January 2015. The stock has risen 22.16% in two trading sessions from Rs 8.35 on 13 January 2015.
The stock had outperformed the market over the past one month till 14 January 2015, rising 28.96% compared with 0.01% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.92% as against Sensex's 3.79% rise.
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The small-cap company has an equity capital of Rs 1954.93 crore. Face value per share is Rs 10.
According to reports, the Reserve Bank of India (RBI) may allow the Tata Group to purchase Docomo's 26.5% holding in Tata Teleservices (TTSL) at a previously agreed price of Rs 58.045, versus an independently determined fair value of Rs 23.34. The RBI is easing a norm that bars local companies from paying more than fair value for such deals, the report said.
In April 2014, NTT Docomo Inc. announced its plan to sell its entire stake (124.89 crore shares, or about 26.5% of outstanding shares) in Tata Teleservices (TTSL). The exit came after TTSL failed to achieve certain performance targets. In March 2009, the Japanese company had acquired the stake in TTSL for $2.7 billion (Rs 13070 crore at the then exchange rate).
TTML is the listed entity of telecom operator TTSL. As on 31 December 2014, NTT Docomo held 11.76% stake, TTSL held 36.54% stake, Tata Sons held 19.58% stake and Tata Power Company held 7.02% stake in Tata Teleservices (Maharashtra) (TTML).
TTML reported net loss of Rs 159.38 crore in Q2 September 2014 as against net loss of Rs 165.23 crore in Q2 September 2013. Net sales rose 4.16% to Rs 682.42 crore in Q2 September 2014 over Q2 September 2013.
TTML spearheads the Tata group's presence in the telephony sector in the telecom circles of Maharashtra (including Mumbai) and Goa.
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