Indian state-run telecommunications company Mahanagar Telephone Nigam Limited (MTNL) announced that its shareholders have approved proposals to raise authorised share capital by over 12 times to 10,000 crore rupees ($1.3 billion) and borrowing limit by around 38 percent to $3.4 billion.
MTNL said that to increase the authorised share capital of MTNL from $108 million to $1.4 billion, a total of 100 percent shareholders voted in favour of the resolution. The resolution to raise the borrowing powers of the board from $2.4 billion to $3.4 billion was passed as a special resolution.
The company has requested the government to grant it fourth generation spectrum instead of equity worth around $884.7 million to $952.7 million and extend its mobile licence, which is expiring in 2019, till 2021.
MTNL said it will need to invest $176.9 million to $204.1 million beyond the cost of spectrum for services and capital expenditure and it plans to increase the borrowing limits of MTNL.