Viom Networks is planning to undertake an initial public offering (IPO) by the end of the year to fund growth and acquisition plans. Meanwhile, Viom Networks has also has revived discussions with the American Tower Corporation (ATC) to sell a stake to the latter. The proceeds from either of the two activities will be utilised for both organic and inorganic growth, including acquisitions to strengthen operations in India and enter emerging markets such as Africa, Bangladesh and Myanmar.
The company is looking for a valuation of Rs 250 billion under the IPO. However, ATC is reportedly pegging the value at Rs 215 billion with a gross debt of Rs 65 billion. The company has about 42,000 telecom towers in its portfolio. Presently, Tata Teleservices Limited holds about 54 per cent stake in Viom Networks while 18.5 per cent stake is held by Srei Group. The remaining stake is held by private equity firms Macquarie SBI Infrastructure, GIC Investments, IDFC Private Equity and Funderburk Mauritius (Oman Investment Fund).
Under its expansion plans, Viom wants to set up 2,000 towers in 2015-16. It is also in discussion with three companies for an acquisition either in the tower assets space or in the data solutions space, which will help it to offer solutions such as Wi-Fi, small cells and manage others’ towers. The company expects to finalise a purchase in the July-September 2015 quarter.
