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Telecom operator SSTL, Russain Sistema's Indian arm, today said it is now free to seek fresh approval for 100% foreign direct investment, following a Rajasthan High Court order in its favour.
"With the dismissal of the application filed by the minority shareholders, Sistema Shyam TeleServices Ltd, which provides its telecom services under brand MTS, can now freely move ahead for approvals to change its shareholding pattern and/or FIPB approvals to bring in 100% FDI," Sistema Shyam Teleservices (SSTL) said in a statement.
The court on January 13 dismissed the plea of minority shareholder Jindal Securities and three others seeking listing of SSTL in a fixed timeframe and exit from the company at a pre-determined price.
The order said "no direction for listing of shares of the company ...." The court also ruled that reliefs claimed by minority shareholders of appointing a Director from amongst the minority shareholders and for compensation for delayed listing of shares are ex-facie beyond the scope of the sanctioned scheme.
"I therefore find no force in the application. Accordingly dismissed. The applicants are free to take steps/ there remedies as otherwise available in ;aw," the order passed by Justice Alok Sharma said.
Minority shareholders account for about 0.66% stake in SSTL.
Sistema JSFC holds 56.68% stake in the company, Russian Government 17.14% and other foreign partners 0.13%. Indian promoters of SSTL holds 24% and other Indian partners 2.05% in Sistema Shyam Teleservices.
The company in May 2014 approached Foreign Investment Promotion Board (FIPB) to raise foreign direct investment limit in the company but the same was rejected in September 2014.
"The favourable order passed by the High Court of Rajasthan vindicates SSTL's stand, that the Company is committed towards working in the interest of all shareholders while maintaining the highest standards of corporate ethics and governance," SSTL Executive Director for Legal Affairs Neera Sharma said.
