Tata Teleservices (Maharashtra) or TTML has hit 20% upper circuit on the bourses today, and remains frozen at a price of Rs. 8.45 per share on NSE. Its current market cap stands at Rs. 1,650 crore. While 1.46 crore shares have already changed hands since morning, there are outstanding buyers for over 26 lakh shares currently on both the exchanges at the upper circuit limit.   

As per news reports, Tatas have offered to buy out Japan’s NTT Docomo’s 26.5% stake in the unlisted and loss making teleco, Tata Teleservices, the parent of TTML , at Rs. 23.30 a share, after RBI and Finance Ministry declined its earlier offer price of Rs. 58 per share. However, this is not acceptable to the Japanese counterpart, who continues to demand Rs. 58 per share in the London Court of Arbitration, as per its Nov 2008 agreement with the Indian partner.

Since RBI and Finance Ministry are involved in this transaction, which nears direct linkage with India’s foreign policy vis-à-vis Japan, there is likely to be a lot of political twists and turns to this whole saga. Till then, market-men are hoping to make a quick buck.