The Foreign Investment Promotion Board has approved Uninor’s rights issue to raise Rs 82.50 billion.
Prior to this, Unitech Limited had opposed the rights issue in the district court of Gurgaon, which stayed the process.
Telenor then challenged the stay in the Punjab and Haryana High Court, which also decided to continue with the stay. Telenor then appealed to the 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.
The company had earlier said that it had kept its option open to find a new Indian partner, if Unitech did not subscribe to the rights issue.
The company wants to raise capital for expansion and repaying some of its debts. The company has a debt of around Rs 50 billion, a substantial part of which will be repaid through the rights issue.
The Norwegian firm is investing Rs 155 billion in the Indian venture, including the Rs 61 billion initial funding and Rs 50 billion for current roll-out.
