Sistema Shyam Teleservices (SSTL), the telecom JV between Russian operator Sistema and conglomerate the Shyam Group, will appoint banks within the next couple of months to advise it on its IPO, according to reports citing SSTL CEO Vsevolod Rozanov.
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Sistema Shyam Teleservices (SSTL), the telecom JV between Russian operator Sistema and conglomerate the Shyam Group, will appoint banks within the next couple of months to advise it on its IPO, according to reports citing SSTL CEO Vsevolod Rozanov.
In an email to TelecomFinance, SSTL confirmed that it is considering appointing bankers for its planned listing but added that it was too early for the company to be more concrete about the process.
In late December last year, the Russian government said it would invest about US$600m in SSTL in return for a 17% stake in the company, which also secured a US$200m loan from Gazprombank. The deal is reportedly expected to be completed within the next few weeks.
A statement explained at the time that Sistema and the Russian government’s total stakes in SSTL would not exceed the 74% foreign direct investment (FDI) cap.
This investment was part of a scheme aimed at settling India’s US$1bn outstanding debt with the former Soviet Union by financing investments in India.
SSTL, which operates under the MTS brand, needed a decision on the investment before it could submit an IPO proposal, as it required accurate information about its shareholding structure.
Rozanov was also quoted saying that it plans to complete the commercial roll-out of its mobile phone services across India’s 22 circles by June this year. SSTL currently offers services in 18 circles.
Back in January, a spokesperson for SSTL confirmed to TelecomFinance that the company was looking to grow the business and was reviewing all opportunities available, including M&A.
But SSTL is also facing uncertainties regarding its 2G licence in the country in the wake of the scam saga.
