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TowerVision to invest 
1500 Crore in scaling up capacity
New Delhi: Telecom tower company TowerVision will be using the 
1,500 crore it raised from a consortium of investors to scale up capacity to 8,000 towers, enough to stand alone in a field that's been swept by a wave of consolidation, reports Economic Times.
"Once you pass the critical mass of over 3,000 towers, one can survive. Both technically and financially, our business model is sound and we take great care in ensuring where our towers are located to make it financially viable," TowerVision CEO Amit Ganani told Economic Times on Wednesday. He said that the firm planned to expand its units to 12,000 by 2012.
The company netted around 1,500 crore from a consortium led by the Hong Kong-based Quadrangle Group. Cellular operators are increasingly outsourcing passive infrastructure, IT and BPO services to focus on core functions like branding, marketing and customer care.
For TowerVision, this is the second instance of capital infusion into the company. In 2008, the tower co had raised about 1,400 crore Morgan Stanley contributing a significant chunk of this for an equity stake.
"The equity financing, together with a concurrent debt financing, will provide the company with over $300 million in expansion capital. Proceeds from the capital raised will be used to fund the accelerating growth of the business and significantly expand the company's tower portfolio. Quadrangle was joined in this round of funding by seven global institutional investors. But, terms of the investment cannot be disclosed," Ganani said.
1,500 crore it raised from a consortium of investors to scale up capacity to 8,000 towers, enough to stand alone in a field that's been swept by a wave of consolidation, reports Economic Times.
"Once you pass the critical mass of over 3,000 towers, one can survive. Both technically and financially, our business model is sound and we take great care in ensuring where our towers are located to make it financially viable," TowerVision CEO Amit Ganani told Economic Times on Wednesday. He said that the firm planned to expand its units to 12,000 by 2012.
The company netted around 1,500 crore from a consortium led by the Hong Kong-based Quadrangle Group. Cellular operators are increasingly outsourcing passive infrastructure, IT and BPO services to focus on core functions like branding, marketing and customer care.
For TowerVision, this is the second instance of capital infusion into the company. In 2008, the tower co had raised about 1,400 crore Morgan Stanley contributing a significant chunk of this for an equity stake.
"The equity financing, together with a concurrent debt financing, will provide the company with over $300 million in expansion capital. Proceeds from the capital raised will be used to fund the accelerating growth of the business and significantly expand the company's tower portfolio. Quadrangle was joined in this round of funding by seven global institutional investors. But, terms of the investment cannot be disclosed," Ganani said.