Tata Sons Ltd, the promoter of Tata Teleservices (Maharashtra) Ltd , cancelled a share auction it had launched in the telecommunications carrier on Friday after most bids were below a floor price set by the company.
Tata Sons had planned to sell 51.6 million shares or a 2.7 percent stake in the phone company and increase the public holding to 25 percent in line with rules issued by the stock market regulator.
It did not directly give a reason for cancelling the auction in its stock exchange filing later on Friday, but cited a rule that allows such cancellations on grounds of lack of sufficient demand.
Data from the stock exchange showed that the auction of shares in Tata Teleservices (Maharashtra) received bids for just under 85 percent of the shares on offer. The average price of the bids was 5.67 rupees a share compared with a floor price of 8.90 rupees set by Tata Sons.
Money-losing Tata Teleservices (Maharashtra) is a unit of Tata Teleservices Ltd, India's. No. 6 mobile phone carrier by customers and 26 percent owned by Japan's NTT DoCoMo.
Tata Teleservices (Maharashtra) shares fell 9 percent on Friday to close at 8.05 rupees.