Escorts Telecom eyes $40 mn from investors
By siliconindia   |   Friday, 14 March 2003, 20:30 IST
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NEW DELHI: Escorts Telecom Ltd, which holds cellular licences for circles of Uttar Pradesh (East), Rajasthan and Himachal Pradesh, is talking to potential investors for tying-up $30-40 million, to part-fund its overall investment requirement of $150 million. "The overall project size for Escorts Telecom is roughly $150 million, which would include about $75 million raised as debt and $75 million via equity. Of the equity component, we expect the new investors to bring in about $30-40 million," Escotel Mobile Communications Ltd CEO, Rajan Swaroop told reporters on the sidelines of a telecom seminar organised by Voice and Data. He said while IFC had committed that they will participate in ETL, talks with other investors were on. The services in the three new circles would start six-seven months after tying up the investors, he pointed out but declined to give a timeframe within which the new investors were expected to come in. Following the equity rejig, the group of investor would hold up to 40 per cent stake in Escorts Telecom, while the balance would be held by Escorts. At present, the entire equity is being held by Escorts. Swaroop said Escotel Mobile Communications which holds the licence for existing circles of Kerala, Haryana and Uttar Pradesh (West), had invested Rs 100 crore in the current financial year. Asked as to how the investments would be funded, Swaroop said: "The two partners in the company Escorts and First Pacific would bring in this amount." Currently, Escorts holds 51 per cent stake in Escotel Mobile while the balance 49 per cent stake is being held by First Pacific.