Shares of MTNL soared 6 per cent on Wednesday, after the company said on December 31, it would seek shareholders’ approval for raising Rs 2,138.6 crore as a part of sovereign guarantee bond.
The central government has approved MTNL to raise up to Rs 6,500 crore through sovereign guarantee bonds for a tenure of 10 years, as a part of company’s revival plan. MTNL has already raised Rs 4,361.4 crore under the package on 12 October, 2020.
“Now, your company is planning to raise the remaining amount of Rs 2,138.6 crore through issue of bonds. For issue of bonds/debentures, approval of shareholders is mandatory. The shareholders’ approval is valid for one year from the date of this AGM,” said MTNL in an AGM notice.
The company will seek shareholders’ nod to raise Rs 2,138.6 crore through sovereign guarantee bonds at its annual general meeting (AGM) scheduled on December 31. It will also seek shareholders’ nod for the appointment of P K Purwar as its Chairman and Managing Director (CMD). Following the development, the company’s shares gained 6 per cent hitting a high of Rs 10.76 on BSE.