The Punjab and Haryana High court has permitted Uninor to raise funds up to Rs 65 billion through a rights issue.
Commenting on this, Glenn Mandelid, spokesperson for the company said, “The Punjab and Haryana High Court’s decision, taken on August 26, 2011, 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.”
Prior to this, the board of Unitech Wireless had decided to opt for a rights issue to raise up to Rs 65 billion in funds. This was challenged by Unitech in the District court of Gurgaon, which stayed the process.
Telenor challenged the stay in the Punjab and Haryana High Court, which upheld the decision of the district court.
Thereafter, Telenor challenged the stay in the Supreme Court, which directed the Punjab and Haryana High Court to review the case.
Unable to secure long-term loans from Indian banks due to uncertainity in the telecom sector, the rights issue would help the company to obtain funds from international banks.
