Tata Teleservices (Maharashtra) Ltd shares soared 20 per cent today to hit the upper circuit limit after Tata Sons got an approval from the RBI to buy Japanese telecom firm NTT DoCoMo's stake in the joint venture.
TTML's scrip zoomed 20 per cent to settle at Rs 10.02 - its upper circuit limit on the BSE.
At the NSE, it rallied 19.76 per cent to Rs 10.
Tata Sons has got an approval from the RBI to buy Japanese telecom firm NTT DoCoMo's stake in their struggling joint venture, Tata Teleservices, for Rs 7,250 crore after the central bank changed its rule.
The Reserve Bank of India (RBI) last month informed the Finance Ministry that it was "inclined to accept" the proposal of Tata to buy DoCoMo's 26.5 per cent stake at Rs 58 per share, half the rate which the Japanese firm originally paid.
According to sources, the central bank said the "structure of the contract is such that the investor, in any circumstances, if it intends to exit, will receive at least Rs 58.045 or higher per share."
As per RBI norms, the non-resident investor is not guaranteed any assured exit price at the time of making such investment and shall exit at a fair price computed as above at the time of exit.
