SSTL looks to raise INR60bn; leaders expect amicable resolution

30 Mar 2012

Russian-backed cellco Sistema Shyam Teleservices Ltd (SSTL) is looking to raise INR60 billion (USD1.147 billion) through a preferential share issue. The company said that the shares were ‘non-convertible and redeemable’ adding that there would be no change to the equity structure of the company. SSTL had all of its licences cancelled by the Supreme Court’s controversial order in February this year. As previously noted by CommsUpdate, the Russian Federation, which owns a stake in SSTL through Sistema, has stepped in to put pressure on the Indian government. Most recently, Russian President Dmitry Medvedev raised the issue with Indian PM Manmohan Singh earlier this week during bilateral negotiations after the BRICS (Brazil, Russia, India, China and South Africa) summit. Singh assured Medvedev that India continues to welcome foreign investment and both leaders were reportedly happy that the dispute could be resolved ‘within the framework of the law.’

India, Russia, Sistema Shyam TeleServices (SSTL, MTS India)