Mahanagar Telephone Nigam Limited (MTNL) is planning to seek shareholders’ approval for monetisation of land and buildings and raising up to Rs 65 billion through non-convertible debentures (NCDs).
MTNL plans to hold a general meeting on January 8, 2020, to discuss the issue.
The company would seek shareholders’ approval for issue of non-convertible redeemable non-cumulative preference shares (NCRNCPS) on a private placement basis to the government towards payment of 4G spectrum cost.
Approval for monetisation of land and buildings is also being sought as specified/ identified by its board in line with the Department of Investment and Public Asset Management (DIPAM) guidelines and as per revival plan of the company approved by the Union Cabinet recently.
The consent of the shareholders is also being sought for opening of an escrow account for ring-fencing the proceeds from monetisation of assets for use by the company under revival/restructuring plan.