MUMBAI: The board of directors of Ortel Communications, the multi-system operator (MSO), has approved the issue of equity shares to promoter group entities.

According to the release issued to the BSE, the company has proposed to issue 25 lakh equity shares at an issue price of Rs 35 per share to the promoters on a preferential basis for an aggregate amount of Rs 8.75 crore.

Furthermore, the board has also approved the issue of 9 per cent cumulative, non-convertible, redeemable preference shares for an amount not exceeding Rs 10 crore by way of private placement for a period of five years.

It has also approved the acceptance of fresh inter-corporate loan of Rs 8 crore at 9 per cent per annum for a period of five years.

The board has convened an extraordinary general meeting of the company on 9 April to approve the issue of equity shares and redeemable preference shares.