Tata Sons, one of the biggest business conglomerate in India, has decided to invest additional ₹12000 crores in its telecom vertical. This is in order to help the telecom arm in paying its debts and to strengthen its financial portfolio. The proposed investment will take within this financial year.
The decision to invest this amount was recently approved by a meeting of the board of Tata Sons. Tata Sons is currently headed by N Chandrasekaran. Chandrasekaran has been working on strategies to address the concerns of loss-making verticals under Tata Group.
Though it is not yet confirmed on what percentage of the proposed investment will be used to repay the debt and working on the newer technologies and expansion. Tata Teleservices, along with other telecom companies in the country have been struggling with revenue and profits ever since Reliance jio marked its entry in the market last year.
We had recently reported that Tata and Airtel are planning to come together in Telecom and DTH sector to check the multiple-fold growth of Reliance Jio in the recent times. The new announcement comes in addition to Tata’s decision to invest ₹2000 in its telecom arm earlier this year. This move will felicitate Tata Sons buying the stake of NTT Docomo from the telecom arm and this will increase the stake percentage of Tata Sons in Tata Teleservices to over 90%. Tata Teleservices is an unlisted company owned by Tata Sons.