Tata Tele at 5% LC

Tata Teleservices, which had closed yesterday at Rs.146.75, opened lower today at Rs.144 and soon went on to hit the 5% LC of the day at Rs.139.45, where it now remains frozen.

The market is worried about the upcoming Rs.1530 crore to be paid t the banks by end of this month and another Rs.800 crore by 11th March.

This worry is despite the fact that Tata Sons has assured the company that it will infuse the required Rs.2420 crore to pay off the lenders. This unconfirmed news which is why the market is reluctant to believe.

The news further goes that Tata Sons will raise the cash by participating in the Rs 18,000-crore buyback announced by TCS. Tata Sons and its group company, Tata Investment Corporation, will raise around Rs 12,993 crore by selling their TCS shares at Rs 4,500 per share.