Norwegian telecom giant Telenor has started a process to raise up to Rs.8,000 crore in its Indian joint venture with real estate developer Unitech, said a top company executive.
The JV Unitech Wireless wants to raise cash through a combination of rights issue and debt even though the local partner remains non-committal on equity investments.
The Punjab and Haryana high court recently lifted a stay on the fundraising process, which was stalled following Unitech’s opposition to a proposed rights issue. The cash-rich Telenor is bullish on the rights issue but not averse to raising debt depending on market conditions.
Telenor’s plans will be one of the biggest follow-on investments in the domestic telecom industry embroiled in 2G spectrum scam. Telenor, which has a controlling 67.25% stake in the mobile services JV, may induct a second Indian partner if Unitech does not participate in the rights issue.
The global telecom major can increase its equity holding only up to 74% under FDI regulations in the country.
