HPIL board approves allotment of shares to Tata Communications

State-owned Hemisphere Properties India Ltd's board has approved issuance of shares to Tata Communications under an agreement between them in connection with transfer of surplus land during the disinvestment of erstwhile VSNL in 2002. Hemisphere Properties India is a special purpose vehicle and custodian of 773.13 acre land that was owned by then state-owned telecom firm VSNL.

"HPIL at its board meeting held on February 18, 2020 has approved allotment and issue of shares to the shareholders of the company as on record date, September 18, 2018, as defined in the scheme in the ratio of 1:1," Tata Communications said in a regulatory filing on Wednesday. In February 2002, the government sold majority stake in VSNL, now known as Tata Communications.

At the time of disinvestment, VSNL's 773.13-acre of surplus land in four cities -- Pune, Kolkata, New Delhi and Chennai -- was kept out of the disinvestment process. These land parcels were then transferred to HPIL. VSNL had a total of 1,230.13 acres of land.

In 2005, HPIL was set up under the telecom ministry to execute the transaction related to the surplus VSNL land. Under the proposed scheme, HPIL had to issue fully paid-up equity to shareholders of Tata Communication in the ratio of 1:1. This issuance has now been approved by the HPIL board.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)