NTT DOCOMO has pumped in Rs 7.84 billion equity in Tata Teleservices Limited (TTSL) by subscribing to fresh equity in the company in the last two financial years ending March 2012, sae news reports.
The equity infusion by NTT DOCOMO coincides with the Tata Group’s holding company Tata Sons infusing Rs 15.93 billion and increasing its holding in TTSL from 37.92 per cent in 2011 to 39.22 per cent at the end of March 2012.
NTT DOCOMO paid $2.7 billion for acquiring 26 per cent stake in TTSL in 2008. It has two call options. Firstly, to increase its stake in TTSL to 35 per cent in 2012 and secondly, to raise it to 51 per cent in 2014, thereby acquiring a controlling stake in the company. The call option gives the investor the right but not the obligation to buy shares at a preset price. Additionally, NTT DOCOMO has the option of selling its 26 per cent stake to TTSL, in case it decides not to exercise its call options.
