Sistema Shyam allots shares to Russian govt

Sistema Shyam, a joint venture between Russian Sistema and India's Shyam group, has issued 54,73,12,918 equity shares to the Russian government against $600 million received in December last year.

All formalities relating to the allotment of shares have been completed, a company statement said. According to the revised holding structure of SSTL, the Russian Federation holds a 17.14 per cent stake, Sistema 56.68 per cent, Shyam Group 23.98 per cent and the remaining 2.2 per cent is held by the public.

Prior to this share allotment, SSTL also issued 19,06,49,582 equity shares to its existing shareholders including the Indian promoters — Shyam Group. The rights issue was done to accommodate the foreign direct investment by the Russian Federation into SSTL. The issue was open to all existing shareholders of SSTL, excluding Sistema, the statement said.

The paid-up capital of SSTL now stands at Rs 3,193.92 crore.

The company offers mobile service across various telecom circles under the brand MTS with 10 million customers. SSTL plans to utilise the entire fund to finance its development and to expand its branded retail network across various circles.