Indian independent towers operator Viom Networks is now looking to raise Rs45bn (US$1bn) rather than the initial Rs50-60bn (US$1.5bn) it was seeking from an upcoming IPO, according to a source cited by Dow Jones.
The transaction would reportedly take…
Indian independent towers operator Viom Networks is now looking to raise Rs45bn (US$1bn) rather than the initial Rs50-60bn (US$1.5bn) it was seeking from an upcoming IPO, according to a source cited by Dow Jones.
The transaction would reportedly take place between April and September.
Last year, the company hired five banks – Citigroup, Credit Suisse, Goldman Sachs, IDFC Capital and Morgan Stanley – to arrange the share sale.
The sale is expected to comprise a fresh issue of shares by Viom and the sale of shares by existing private equity firms.
The JV between Quippo Telecom Infrastructure and the infrastructure arm of Tata Teleservices also counts investment by private equity firms Macquarie SBI Infrastructure Fund (MSIF), IDFC Private Equity, GIC-Singapore and Oman Investment Fund.
Last August, MSIF – an India-focused infrastructure fund jointly managed by Macquarie Capital and State Bank of India – bought an 11% stake in Viom for Rs14.2bn (US$304m).
At the time, the company said that the proceeds from the transaction would be used to repay loans, making it debt free.
The company, which has 37,000 towers with 80,000 tenants, plans to set up another 25,000 towers in the next two years, it added.
Last month, it was reported that Viom would raise (US$330m) in debt finance over the next ten years.
The borrowing, led by Deutsche Bank, would also include the German development agency DEG, and two Indian banks: Bank of India and Bank of Baroda.
The interest rate on the external commercial borrowing and rupee finance would be 350bp over Libor.
Viom needs just under Rs20bn (US$440m) – with 80% of this to be made up of debt – to carry out its acquisition plans, a source reportedly said at the time.
