Deck cleared for Uninor to raise funds through rights issue

New telecom operator Uninor today said the Punjab and Haryana High Court has cleared the way for the firm to raise up to Rs 6,500 crore through a right issue.

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. The company is being probed by the CBI as part of the 2G scam investigation for irregularities.

"The Punjab and Haryana High Court's decision on August 26 cleared the way for Uninor to proceed with the rights issue. We welcome this decision as Uninor will be able to raise additional funding from both its shareholders ...," Telenor spokesperson Glenn Mandelid said.

Earlier, Unitech Wireless board, which operates under Uninor brand name, had decided to go for the right issue to raise up to Rs 6,500 crore for the funding. It was challenged by the real-estate company Unitech Ltd 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 than challenged the stay in Supreme Court which directed Punjab and Haryana High Court to review the case, which now has cleared the way for Uninor to go ahead with right issue.

"We received the court order on September 2," Mandelid said.

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.