Tata Teleservices (TTSL), a Tata group company in telecom business and Japan based NTT Docomo (Docomo), announced their agreement on a strategic alliance in India. As per the agreement Docomo will acquire 26% of TTSL`s stock for approximately Rs 130.70 billion.

The Docomo as per regulations of the Securities and Exchange Board of India (SEBI), will make an open offer to acquire up to 20% of outstanding equity shares of Tata Teleservices Maharashtra (TTML), and  this will be via joint Tender offer with TataHolding company Tata Sons.

The capital alliance between the partners expect to help TTSL expand mobile communication operations in the fast-growing Indian mobile market, aiming to increase operating revenue and achieve steady business growth.

Tokyo-based Docomo, the world`s leading mobile operator, has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services.

Shares of the company gained Rs 1.27, or 7.6%, to settle at Rs 18. The total volume of shares traded was 17,541,472 at the BSE (Wednesday).