Sistema Shyam Teleservices issued over 54.73-crore Equity Shares to the Russian Government

Sistema Shyam Teleservices issued over 54.73-crore equity shares to the Russian government (17.14 per cent stake) against $600 million received in December 2010 on 30 March 2011. Russian oil-to-telecoms group Sistema's Indian mobile unit completed allotment of shares to a Russian government agency in return for a previously announced about USD 600 million investment in the company.

Unlisted Sistema Shyam TeleServices (SSTL) announced a raise of Rs 1.94 billion (USD 43.3 million) in a rights issue to its shareholders, India's Shyam Group and minority stake holders before it allotted shares to the Russian agency. The rights issued were aimed at accommodating foreign investment by the Russian government. Foreigners can hold a maximum 74% in telecoms firms under Indian rules.

After the share issues, the Russian government owns 17.1% of SSTL, while Sistema's holding came down to 56.7% from 73.7%. Shyam Group owns about 24% of the company and the remainder 2.2% is owned by minority public shareholders.