The promoter of Tata Teleservices (Maharashtra) Ltd, Tata Sons Ltd of India, had announced the cancellation of a share auction it had launched for the telecommunications firm. The sale was cancelled after most of the bids submitted were well-below the floor price set by the company.
Tata Sons had prepared to sell 51.6 million shares or a 2.7% share in the company. This would also increase the public's holdings in the firm to the mandated 25% by the stock market regulatory agency.
The promoter did not provide a direct reason for the cancellation in its filed stock exchange documentation, but it had cited a rule allowing cancellation on the grounds of lack of sufficient demand.
The stock exchange data indicated that the share auction for Tata Teleservices (Maharashatra) Ltd received bids 15% below the shares on offer. This means that the average price of the offers were at INR5.67 rupees per share when the floor price set was at INR8.90 per share set by the promoter.
Tata Teleservices (Maharashatra) is a subsidiary of Tata Teleservices Ltd. Nearly three quarters of shares are owned by the Indian mobile phone carrier while 26% is ownwd by NTT DoCoMo of Japan.
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