MTNL gets nod to raise Rs 17,571 cr via bonds, borrow Rs 35k from banks

State-owned MTNL on Thursday said its shareholders have approved a proposal to raise up to Rs 17,571 crore through government-guaranteed debt bonds on private placement basis.

Shareholders of the loss-making public sector telecom firm have also enhanced power of the board to borrow up to Rs 35,000 crore from banks and other financial institutions, according to the result of the scrutinised report of MTNL's annual general meeting held on October 10.

According to the report, 99.85 per cent shareholders voted in favour of the resolution to "offer or invite subscriptions for government guaranteed, unsecured, listed, redeemable Non-Convertible Debentures (NCDs) in the nature of bonds, in one or more series I tranches, aggregating up to Rs 17,571 crore on private placement basis".

The resolution to raise the borrowing powers of the board from Rs 30,000 crore to Rs 35,000 crore received 99.85 per cent votes in favour, the report said.