Tata Teleservices up 3% on Virgin JV

MUMBAI: Shares of Tata Teleservices Maharashtra rose Monday on reports that Richard Branson-owned Virgin group will launch Virgin Mobile brand in India in association with the company. At 11:05 am, the stock was Rs 36.35, up 3.12 per cent. It touched a high of Rs 36.90 and low of Rs 33.25. Around 40,12,550 shares have changed hands so far today, against two-week average of 37,82,442 shares.

Virgin���s entry with Tata Teleservices is not as a mobile virtual network operator--a status not allowed in the country--but through a brand extension plan, and both retain the option to work with other partners, the two companies said.

The deal is a simple franchise arrangement under which Tata will sell part of its services using the Virgin brand and pay per use.

The Virgin-based service would target young users. Virgin and Tata hope the alliance will break even at a user base of 5 million in three years. Virgin group chairman Branson put the revenue target at Rs 35,000 crore by 2010.