State Bank of India (SBI) has sold its 2.02% equity stake in Tamilnadu Telecommunications Ltd (TTL), marking a strategic exit from the fiber optic cable manufacturer. The transaction was executed via bulk deals on January 9, 2024, at an average price of Rs 11 per share, amounting to Rs 46.36 lakh.
Key Highlights:
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TTL is a joint venture between Telecommunications Consultants India Ltd (TCIL), Tamilnadu Industrial Development Corporation (TIDCO), and Japan’s Fujikura Ltd.
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SBI’s exit reduces its holding from 7.32% to 5.3%, aligning with its broader capital optimization strategy.
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TTL has faced persistent financial stress, reporting a net loss of Rs 15.5 crore in FY25 and negative reserves of Rs 225 crore.
Strategic Context:
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TTL’s market cap stands at Rs 108 crore, with shares surging 124% over the past year despite weak fundamentals.
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The company has zero revenue for the last 12 quarters and continues to operate under high debt and poor interest coverage.
Investor Impact:
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The divestment signals SBI’s intent to streamline noncore holdings and focus on highperforming assets.
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TTL’s shareholding now reflects increased public ownership, with promoter holding steady at 63.63%.
Sources: Screener.in, ETMoney, Valueresearchonline, Economic Times.