Tata Teleservices plans to raise Rs3,000 crore ($670 million) through a rights share issue that will be subscribed by major shareholders, including Japan's NTT DoCoMo.

NTT DoCoMo is expected to utilise the rights offer to raise its stake in Tata Teleservices to 26 per cent.

Tata Teleservices said it will use the proceeds of the planned $670 million share sale to expand network.

Tata Teleservices Ltd is expected to announce the rights offer on 31 March, sources close to the development said.

The proceeds will help Tata Teleservices build its third- generation wireless network.

Tata Teleservices Maharashtra Ltd (TTLS), the listed unit, provides mobile-phone services in Mumbai and the whole of Maharashtra as well as Goa.

The Tata Tele stock, which rose as much as 2.6 per cent in early trade, closed the day up 0.3 per cent at Rs15.3 at 3:30 pm.

The shares climbed as much as 2.6 per cent earlier.

Tata Teleservices won third-generation licences in nine of India's 22 telecommunications zones, paying 59 billion rupees.

NTT DoCoMo rose 1.2 per cent to close at 147,900 yen in Tokyo trading. The stock has gained 6 per cent over the past year.

Tata Teleservices plans to split the rights offer into two equal tranches of Rs1,500 crore each, one of the people said.

NTT DoCoMo, Japan's largest mobile-phone operator, has already invested 250 billion yen ($2.6 billion) in Tata Teleservices in March 2009.

Temasek Holdings Pte, Singapore's state-owned investment company, had bought 9.9 per cent of the Tata Group unit in March 2006.

Tata Group generated combined revenues of around $70 billion last year.