MTNL to raise Rs 2,138.6 crore from Sovereign Guarantee Bond, to seek approval from shareholders on 31 December

State-owned telecom company MTNL said on Tuesday that it would seek approval from shareholders on December 31 to raise Rs 2,138.6 crore under the sovereign guarantee bond. The government has allowed the company to raise Rs 6,500 crore through a sovereign guarantee bond for a period of up to 10 years as part of the revival package. The company raised Rs 4,361.4 crore on 12 October under this package.

The company will seek approval from the shareholders for fundraising at a scheduled annual general meeting (AGM) on 31 December. The company said in its AGM notice that now the company wants to raise the remaining Rs 2,138.6 crore through bonds. Shareholders’ approval is required to issue bonds or debentures. From this AGM, shareholders’ approval will remain in force for 1 year.

MTNL to seek shareholders approval for the appointment of PK Purwar as CMD

MTNL will also seek shareholders’ approval for the appointment of PK Purwar as Chairman and Managing Director (CMD). Purwar is the CMD of BSNL. The Department of Telecommunications has given him an additional charge of CMD of MTNL on 13 April 2020. Purwar has also been the CMD of MTNL for almost 5 years before becoming the CMD of BSNL.