Tata Teleservices results is a foregone conclusion, say sources close to Cyrus Mistry

MUMBAI: After being ousted from the Tata Teleservices Board as a director, sources close to Cyrus Mistry said, “Tata Teleservices like TCS entails a super majority ownership by the Tata Group currently under the control of RNT. This outcome was foregone. Being a closely held company the outcome isn't surprising at all”. On Tuesday, the former chairman of Tata Sons was removed from the board of TCS as well in an EGM called for the same.

Mistry on Wednesday in a unanimous decision was removed as chairman and director of the telecom company. In a filing on the Bombay Stock Exchange on Wednesday, Tata Teleservices Maharashtra (the listed circle) confirmed that Mistry ‘ceased to be a director and consequently chairman of the company with immediate effect’.

According to the annual report filing of FY 16, promoters Tata Sons and NTT Docomo owns 36.17% and 26.5 % respectively which makes it a total of 62.67 %.

Other major Tata group companies which own shares in Tata Teleservices are Tata Communication (9.33%), Tata Power (6.97%), Tata Industries (5.46%), Tata Steel ( 1.37%) and Tata Capital Financial Services (1.32%). Some of the other minority stakeholders are Aranda Investments (Mauritius) (6.45%), Telecom Investments (Mauritius)(1.68%) , IL & FS Trust Company (1.67%), 2i Capital PCC (1.02%) and Siva Industries and Holdings (0.63%).