MTNL Gets Shareholders' Nod To Raise Rs 17,571 Crore Via Bonds, Borrow Rs 35,000 Crore From Banks
The resolution to raise the borrowing powers of the board from Rs 30,000 crore to Rs 35,000 crore received 99.85% votes in favour.
State-owned MTNL on Thursday said its shareholders have approved a proposal to raise up to Rs 17,571 crore through government-guaranteed debt bonds on private placement basis.
Shareholders of the loss-making public sector telecom firm have also enhanced power of the board to borrow up to Rs 35,000 crore from banks and other financial institutions, according to the result of the scrutinised report of MTNL's annual general meeting held on Oct. 10.
According to the report, 99.85% shareholders voted in favour of the resolution to "offer or invite subscriptions for government guaranteed, unsecured, listed, redeemable Non-Convertible Debentures in the nature of bonds, in one or more series I tranches, aggregating up to Rs 17,571 crore on private placement basis."
The resolution to raise the borrowing powers of the board from Rs 30,000 crore to Rs 35,000 crore received 99.85% votes in favour, the report said.