Telenor has that its joint venture partner, Unitech Wireless, has initiated a rights issue of Rs 82 billion.
The operator said that the rights issue was aimed at securing long term funding in the absence of loans from Indian banks.
Further, it is believed that Telenor was not considering making any changes to the ownership structure of Unitech Wireless. Telenor owns 67.25 percent of the joint venture, while Unitech owns the remainder. Both partners need to subscribe to the rights issue to keep their shareholding unchanged.
The Punjab and Haryana High Court recently gave the go-ahead to the company?s rights issue. Prior to that, Unitech had obtained a stay on the rights issue in the Gurgaon district court.
Further, it is believed that the operator had to raise short-term loans of Rs 50 billion, guaranteed by Telenor, to meet its day-to-day operations and fund its ongoing expansion in the country.
Also, the company has said that it plans to invest up to Rs 155 billion in Uninor, its joint venture with Unitech Wireless.
