The Extra Ordinary General Body meeting (EGM) of Sistema Shyam Teleservices Limited (SSTL) on Thursday approved the issue of fresh shares to the Russian Federation and the Indian shareholders.

The issuance of shares is on a preferential basis with 662,745,100 shares to Russian Federal Agency for State Property management of the Russian Federation (Rosimushchestvo) at  Rs 49.31/- per equity share.

Furthermore, the board also approved issue and allotment of 228,549,900 equity shares of nominal value of Rs 10 to each company of existing Indian promoter shareholders of the company. The allotment will be in one or more tranches.

SSTL share capital consists of approximately 2.5 billion shares and after the fresh issue it will be about 3.35 billion shares.

“The new sharing holding pattern will improve the financial stability of SSTL and will increase its share value. The funds will be used for further development of SSTL business in telecom circles of its current operation, as well as for network deployment in new regions not covered by SSTL activities so far”, said Mr. Vsevolod Rozanov, CEO of SSTL.