The FIPB (Foreign Investment Promotion Board) today cleared the Rs 8,250 crore rights issue proposal of telecom services provider Uninor, in which Norwegian operator Telenor has a majority stake.
"The FIPB in its meeting has cleared the proposal of Uninor's rights issue worth Rs 8,250 crore, subject to Court approval," Finance Ministry sources said.
Uninor, a joint venture between Norway's Telenor Group (67.25%) and Unitech Group (32.75%), operates in 13 circles. The company had procured pan-India licence in 2008.
Earlier, Unitech Wireless board, which operates under Uninor brand name, had decided to go for the right issue. But it was challenged by the real-estate company Unitech in the district court of Gurgaon, which stayed the process.
Telenor challenged the stay in the Punjab and Haryana High Court, which also decided to continue with the stay.
Telenor then challenged the stay in Supreme Court which directed Punjab and Haryana High Court to review the case. The Punjab and Haryana Court then lifted the stay, thereby making way for Uninor to proceed with the rights issue.
Unable to secure long-term loans from Indian banks due to uncertainity in the telecom sector, permission for rights issue would help the company to get funds from international banks.
Uninor holds a pan-India UAS licence to offer mobile telephony services in each of India's 22 circles. It is yet to receive spectrum in some circles, including Delhi, J&K, Rajasthan, Assam and the North-East.
Uninor services are available in the 13 circles of UP (West), UP (East), Bihar, Orissa, Kolkata, West Bengal, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Mumbai, Maharashtra and Gujarat.
