Indian handset players plan to raise $1 billion through PE funds

Homegrown mobile handset companies Gee Pee Infotech, Karbonn Mobile, LAVA Mobile, Olive Telecom and Spice Telecom are believed to be holding discussions with private equity firms to raise about $1 billion. This funding will be used to ramp up their operations in the country.

While Karbonn Mobiles plans to raise over $300 million by selling a minority stake to a clutch of global PE funds, it declined to name the PE firms, citing non-disclosure pacts, say news reports.

Kolkata-based Gee Pee Infotech is believed to be in advanced talks with the Motilal Oswal Group, SBI Caps, Srei Infrastructure Finance and the PE arm of Deloitte Touche, to raise about $50 million over the next two months.

Similarly, Spice Telecom is believed to be holding talks with PE funds and other players, as the company plans to opt for a qualified institutional buyers placement of Rs 3-5 billion. Olive Telecom is believed to be close to a $300-million deal with PE investors, while LAVA Mobile is allegedly in discussions with three PE funds to raise $50 million.