Tata Teleservices’s shares plummeting 15% sends shockwaves among its investors

As speculation around Tata Teleservices soon shutting down its operations becomes rife, the investors received another blow as the company’s shares plummeted 15 percent on Tuesday. This comes in the wake of the comments made by Tata Sons Chairman N Chandrasekaran that he would take a ‘tough call on co’.

In an interview to CNBC-TV18, Chandrasekaran said that the company is a crumbling state burdened by huge debt and monthly cash losses. He further stated that a call would be taken about the business in this financial year itself.

Further, he added that a turnaround of Tata Teleservices was an extremely difficult task and that he is committed to finding a solution "one way or the other" very quickly.

"Tata Teleservices...is in a really bad shape. They have a huge debt. The footprint we have and the spectrum we have is very difficult...close to impossible for us to recover. So that is a company we are going to find a solution very quickly," he said.

Tata Teleservices was burdened by Rs 31,000 crore debt in addition to spectrum liability and was incurring cash losses on a month-on-month basis. In the past one month, the stock fell 37 percent, while its three-day loss stood at 29 percent.

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