Tata Tele plunges 9% as Group mulls winding down of biz
If the group goes ahead with its plan, it will be the first major Tata unit to be closed down in its 149-year-old history.
By ETMarkets.com | Updated:
NEW DELHI: Shares of Tata Tele (Maharashtra) tumbled 9 per cent in Friday's trade after Tata Group chairman N Chandrasekaran said he is evaluating the option of winding down the mobile services business, after attempts to sell the beleaguered unit failed, TOI reported.
If the group goes ahead with its plan, it will be the first major Tata unit to be closed down in its 149-year-old history.
Following the report, the stock fell 8.76 per cent to hit a low of Rs 6.14 on BSE, eventually closing at Rs 6.38, down 5.20 per cent.
If the telecom operations are suspended, the conglomerate will have to take a hit on its balance sheet as Tata Tele has a consolidated debt of over Rs 34,000 crore, the TOI report said,
Even lenders to Tata Tele may have to take a haircut, perhaps the first time where they may have to take a knock on their exposure to a Tata entity, sources said.
If the group goes ahead with its plan, it will be the first major Tata unit to be closed down in its 149-year-old history.
Following the report, the stock fell 8.76 per cent to hit a low of Rs 6.14 on BSE, eventually closing at Rs 6.38, down 5.20 per cent.
If the telecom operations are suspended, the conglomerate will have to take a hit on its balance sheet as Tata Tele has a consolidated debt of over Rs 34,000 crore, the TOI report said,
Even lenders to Tata Tele may have to take a haircut, perhaps the first time where they may have to take a knock on their exposure to a Tata entity, sources said.
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