NTT DoCoMo to invest $179 mn in Tata Teleservices rights issue Japan
Japan’s NTT DoCoMo will invest US$179 million to subscribe to Tata Teleservices (TTSL) rights issue to retain its 26% holdings in the Indian mobile phone company.
According to DoCoMo, it had paid a third of this amount and added that the remaining investment would be completed within the next two months. The additional investment is part of DoCoMo’s ongoing strategy to expand its business presence and revenue sources in India’s rapidly growing mobile market.
DoCoMo added that TTSL , country’s fifth-largest mobile phone operator, will use these funds to expand its coverage as well as strengthen the quality of the 3G network it launched in November last year. It offers GSM mobile services under the Tata DoCoMo brand and CDMA services under the Tata Indicom brand.
The Japanese communication major entered India in 2008, when it bought a 26% stake in Tata Teleservices for $2.7 billion. It is learnt that Tata Teleservices plans to raise 3,000 crore through rights issue that would be subscribed by major shareholders, including its Japanese JV partner.