Viom Networks to raise $1.04 Billion through IPO
New Delhi: Viom Networks, a mobile phone tower operator partly owned by the TATA group, is going to raise 
5000 crore (about $1.04 billion) through a public issue, which is expected to hit the market before March next year. The proposed issue, the first by an independent telecom tower company in the country, will be a combination of fresh issue of shares by the company Viom Networks (formerly known as Quippo-WTTIL), besides sale of shares by the existing private equity firms, reports Arun Kumar of the Economic Times.
The objective of the issue is to fund expansion plans and to provide part exit option to some private equity investors, including IDFC Private Equity, according to two executives involved in the process. The funds will be almost evenly divided between the company and PE firms.
Under the proposed plan, Tata Teleservices, having 51 percent at present in the joint venture, is unlikely to reduce its stake. Hence, the company may have to infuse fresh funds in the proposed initial public offer (IPO) to retain its ownership at the same level, according to the first person privy to the development.
Viom Networks had invited investment bankers last week for handling the proposed public issue. Some of the front runners for managing the issue are Morgan Stanley, JP Morgan, IDFC SSKI, RBS and UBS.
The company is to raise funds at an enterprise value of 30,000 crore, said an investment banker who participated in the presentation last week. The company reported an operating profit of 900 crore on a turnover 1,700 crore for the financial year ended March 2010.
5000 crore (about $1.04 billion) through a public issue, which is expected to hit the market before March next year. The proposed issue, the first by an independent telecom tower company in the country, will be a combination of fresh issue of shares by the company Viom Networks (formerly known as Quippo-WTTIL), besides sale of shares by the existing private equity firms, reports Arun Kumar of the Economic Times.
The objective of the issue is to fund expansion plans and to provide part exit option to some private equity investors, including IDFC Private Equity, according to two executives involved in the process. The funds will be almost evenly divided between the company and PE firms.
Under the proposed plan, Tata Teleservices, having 51 percent at present in the joint venture, is unlikely to reduce its stake. Hence, the company may have to infuse fresh funds in the proposed initial public offer (IPO) to retain its ownership at the same level, according to the first person privy to the development.
Viom Networks had invited investment bankers last week for handling the proposed public issue. Some of the front runners for managing the issue are Morgan Stanley, JP Morgan, IDFC SSKI, RBS and UBS.
The company is to raise funds at an enterprise value of 30,000 crore, said an investment banker who participated in the presentation last week. The company reported an operating profit of 900 crore on a turnover 1,700 crore for the financial year ended March 2010.