Sistema Shyam Teleservices Ltd (SSTL),whose 21 of the 22 mobile licences have been cancelled by the Supreme Court,today said it is planning to raise up to Rs 6,000 crore to finance “expanding business operations” across the country.
“SSTL has announced an increase in its Authorised Capital base to Rs 12,000 crore. This has been done by including preference shares to the extent of Rs 6,000 crore,” SSTL spokesperson said in a statement. SSTL,which offers services under MTS brand,said at the Extra Ordinary General Meeting (EGM) held today in Jaipur,that its shareholders have passed the said resolution.
“The increase in Authorised Capital base provides SSTL with the added flexibility to raise finances for its rapidly expanding business operations across the country,” SSTL said.
The preference shares are non-convertible and redeemable and there is no change in the equity structure of the company. Russian telecom giant Sistema,has a 56.68 per cent stake in SSTL and 21 of its 22 licences have been cancelled by the Supreme Court on February 2.
The court had in all cancelled 122 licences belonging to various companies in the 2G spectrum allocation case. Russian government,which has 17.14 per cent stake in the company,has been expressing concern and pressing the Indian government to ensure protection of Sistema’s investment. Sistema JSFC,the majority shareholder in SSTL,has already sent a notice to the Centre invoking the right to protect its investment under a bilateral treaty against the Supreme Court order.
Meanwhile,seeking to address concerns in Russia over cancellation of 2G licence involving telecom company Sistema,Prime Minister Manmohan Singh yesterday assured President Dmitry Medvedev that the government is making efforts to ensure safety of foreign investments in the country.