With Viom Networks Limited (VNL) seeking a valuation of about Rs 200 billion, excluding debt, for its fund-raising exercise, one of its investors Tata Teleservices Limited (TTSL) may be exploring the option of reducing its majority stake in the company by more than half, says news reports.
Along with TTSL, the tower company?s co-promoter, the Srei Group is also looking at diluting a part of its holding in the company. Currently, TTSL and Kolkata-based Srei Group hold 54 per cent and 18.5 per cent stake in the tower company. The 27.5 per cent stake in VNL is held by various financial investors such as IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore.
The dilution of stake by TTSL and Srei Group could lead to a change in the company?s ownership structure. It is looking to raise Rs 15 billion through either a local or an overseas listing or a private placement of shares. Currently, VNL is in talks with six banks to finalise the options to raise fresh capital. The company has also initiated discussions with several private equity investors who want to invest into the tower firm, given the prospect of steady cash-flows over a 10-to-15 year term through existing long-term rental contracts.
VNL plans to use fresh capital to expand its pan-India tower network and reinforce its global operations, with an immediate focus on managing tower networks in Myanmar. Its Singapore-based offshore unit, Viom Networks Singapore, will initially address tower management opportunities in Myanmar and eventually explore business opportunities in markets like Malaysia, Indonesia and Bangladesh.
