Tata Tele (Maharashtra) Limited (TTML) – A Thread
(How did its stock rally 300% in a month)
(How did its stock rally 300% in a month)
1/ The downfall
The company was already suffering losses since 2012
The entry of Jio in 2018 worsened the situation
The company had a all-time high loss in 2018
Tata had to sell off the consumer mobile business
The future was uncertain with employees worried about their jobs
The company was already suffering losses since 2012
The entry of Jio in 2018 worsened the situation
The company had a all-time high loss in 2018
Tata had to sell off the consumer mobile business
The future was uncertain with employees worried about their jobs
2/ Exploring their options
TTML started options to save itself
A selloff/merger with a group company was on the tables
Buyouts were suggested
A US based private equity firm is said to have offered USD 1B
All options were rejected
TTML started options to save itself
A selloff/merger with a group company was on the tables
Buyouts were suggested
A US based private equity firm is said to have offered USD 1B
All options were rejected
3/ Setback
The GoI blocked the merger between TTSL & TATA Communications
The company remained as a mere shadow of its former self
In Oct 2019 the Supreme Court ruled telecom operators to pay AGR dues
TTSL ordered to pay INR 16798 Cr.
This felt like a nail in the coffin
The GoI blocked the merger between TTSL & TATA Communications
The company remained as a mere shadow of its former self
In Oct 2019 the Supreme Court ruled telecom operators to pay AGR dues
TTSL ordered to pay INR 16798 Cr.
This felt like a nail in the coffin
4/ Staying Afloat
The company stay alive only because of fund infusions from TATA Sons
TATA Sons infused a total of INR 46595 Cr. in TTML & TTSL by June 2019
The company stay alive only because of fund infusions from TATA Sons
TATA Sons infused a total of INR 46595 Cr. in TTML & TTSL by June 2019
5/ Revival
The change began with Harjit Singh Chauhan becoming president of Tata Teleservices Ltd (TTSL)
It was rebranded as Tata Tele Business Services (TTBS)
Suddenly the company started buzzing
TTBS has started the Tata Business Hub (TBH)
An e-marketplace for SMEs
The change began with Harjit Singh Chauhan becoming president of Tata Teleservices Ltd (TTSL)
It was rebranded as Tata Tele Business Services (TTBS)
Suddenly the company started buzzing
TTBS has started the Tata Business Hub (TBH)
An e-marketplace for SMEs
6/ New Opportunities
The company has completely focused on SMEs
The large SME market in India gives a huge opportunity
TTBS faces stiff competition from Jio, Airtel, Amazon among others
TATA, however, has an advantage
The group is exploring synergy options with other companies
The company has completely focused on SMEs
The large SME market in India gives a huge opportunity
TTBS faces stiff competition from Jio, Airtel, Amazon among others
TATA, however, has an advantage
The group is exploring synergy options with other companies
7/ The Possibilities
TATA Communications & TTBS
The two could merge or be operationally integrated
They could share resources & data centers
TTBS could sell TATA Communications products to SMEs
There might a super app coming in the near future
TATA Communications & TTBS
The two could merge or be operationally integrated
They could share resources & data centers
TTBS could sell TATA Communications products to SMEs
There might a super app coming in the near future
8/ Future Outlook
The company has predicted growth on the basis of:
Wide Optical fiber network of ~132,000 kms
Strong brand presence across customers in this business
“A One Stop Shop” for meeting needs of enterprise customers
Robust Channel Partner Ecosystem.
The company has predicted growth on the basis of:
Wide Optical fiber network of ~132,000 kms
Strong brand presence across customers in this business
“A One Stop Shop” for meeting needs of enterprise customers
Robust Channel Partner Ecosystem.
9/ Are you excited about the sudden outburst of TTML
Let us know
Let us know
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