Telenor has started work on raising up to INR 80 billion for Uninor, its Indian joint venture with real estate developer Unitech, reports The Times of India. The company wants to raise cash through a combination of rights issue and debt, although the local partner Unitech 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. Telenor is bullish on the rights issue but not averse to raising debt depending on market conditions, an executive at the company told the paper. Telenor, which has a controlling 67.25 percent stake in the mobile services JV, may look for a second Indian partner if Unitech does not participate in the rights issue. Telenor can increase its equity holding only up to 74 percent under FDI regulations in the country. Uninor has asked BNP Paribas to look at the fundraising options.
