Sistema Shyam TeleServices Lt(SSTL), a JV between Sistema of Russia, the Russian government, and the Shyam Group of India, said that it has issued 54,73,12,918 equity shares to the Russian government for the $600 million fund it received in December 2010. 

Sistema operates its telecom services under the MTS brand, which has over 10 million wireless subscribers, and under the MBlaze brand it provides mobile broadband services to more than 500,000 customers in over 130 towns across the country. 

"Prior to this share allotment, the SSTL also issued 19,06,49,582 equity shares to its existing shareholders, including the Indian promoters, the Shyam Group," the company said in a statement. The rights issue, launched mid-February and closed March 8, was done to accommodate the foreign direct investment by the Russian federation into the SSTL. 

The objective of opting for the rights issue was to provide equal opportunity to all the existing shareholders in the new proposed equity structure of the company, the statement said. With the completion of all formalities and allotment of shares to the Russian federation also getting closed, the paid-up capital of SSTL now stands at Rs.3193.92 crore. 

"We are delighted to have received an overwhelming response from all our existing shareholders to the rights issue," said Vsevolod Rozanov, president and chief executive officer of SSTL. "Additionally, with formalities relating to the allotment of equity shares to the Russian federation also getting completed, it truly represents a major milestone," he added. 

The revised holding structure of SSTL leaves Sistema with 56.68% stakes, while the Russian federation holds 17.14% stakes, Shyam Group 23.98% and the remaining 2.2% are held by the public. Earlier equity held by Sistema in SSTL was 73.71%.