Tata Tele hits 20% upper circuit

Tata Teleservices (Maharashtra) has hit the 20% upper circuit at Rs.10.02 within a few minutes of its opening. Its 52-week high is at Rs.14.05.

The stock hit the roof after the RBI gave its in-principle approval to Tata Sons’ proposal to acquire NTT DoCoMO’s stake in Tata Teleservices (TTSL). This is at the previously agreed price of between the two in 2009.  at the price agreed to by the two parties in 2009.

What this means is that this deal will finally go through and the Tata group will buy back Japanese company, DoCoMO’s 26.5% stake at Rs.58/share, costing Rs.7250 crore.  Post this, there is one final approval required from the Finance Ministry after which the buy back can be completed.

This has put TTSL in the limelight as this now means it could soon be put on the sale block and the likes of Vodafone, Telenor and Sistema could enter the fray