MTNL Gets Shareholders' Approval To Raise Rs. 17,571 Crore Via Bonds, Borrow Rs. 35,000 Crore From Banks

State-owned MTNL said its shareholders have approved a proposal to raise upto 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 scrutinized report of MTNLs annual general meeting held on October.

The resolution to raise the borrowing powers of the board from Rs.30,000 crore to Rs.35,000 crore received 99.85 percent votes in favour

According to the report, 99.85 percent shareholders voted in favour of the resolution to ‘offer or invite subscriptions for government guaranteed, unsecured, listed, redeemable Non-Convertible Debentures (NCDs) 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 percent votes in favour, the report said.