Videocon Industries may sell up to 26 per cent stake in its telecom venture to foreign players. “Many foreign companies are eyeing a stake in us (the telecom venture).... We may dilute a stake of up to 26 per cent,” Videocon Industries Chairman Venugopal Dhoot said on Wednesday.
When asked if a stake dilution can take place, he said, “As soon as we get a good valuation we will do that.”
The company’s valuation, currently at Rs 12,000 crore, may go up further, considering the rapid expansion it has undertaken.
The Videocon group company, which offers GSM-based mobile services, has recently started its operations in Tamil Nadu, Gujarat and Mumbai circles. The telecom arm plans to invest Rs 15,000 crore. Videocon has also applied for 3G spectrum.
Videocon is not the first telecom firm to scout for a foreign partner. New entrants like Swan, now known as Etisalat DB, and Uninor, the telecom venture of Unitech had sold stakes to foreign players to fund expansion.