Sistema-Shyam to list on Indian bourses early next year
Within days of its shareholders approving Russian government's plan to pick up 20 per cent stake for USD 600 million, Sistema-Shyam, a joint venture between Russia-based Sistema and India’s Shyam Group, said it will list the company by early 2011.business Updated: Oct 17, 2010 12:12 IST
Within days of its shareholders approving Russian government's plan to pick up 20 per cent stake for USD 600 million, Sistema-Shyam, a joint venture between Russia-based Sistema and India’s Shyam Group, said it will list the company by early 2011.
Sistema-Shyam Telecom Limited (SSTL) offers mobile telecom service under brand MTS and uses CDMA technology. "Clearly I don't see many constraints in listing," SSTL President & CEO Vsevolod Rozanov told PTI when asked whether the company will come out with public offering or list itself on Indian stock exchange by early next year.
A Rajasthan High Court order requires the company to initiate the process of listing within 18 months starting from August 8, 2008. "We are actually working on this because we have received an order from High Court of Rajasthan," he said.
Sistema, leading public diversified corporations in the Russia and the CIS region, has a 74 per cent stake in the joint venture with the Shyam Group. Shyam Group holds 23.5 per cent stake and the rest 2.5 per cent being public partake.
SSTL was given telecom licence for pan-India operations in January 2008 and has CDMA spectrum for all the circles. The Russian Federation will put USD 600 million (about Rs 2,800 crore) in the company.
"It has been accorded to offer, issue and allot on a preferential basis in one or more tranches, up to 58.406 crore equity shares of Rs 10 each at a price of Rs 49.31 to the Federal Agency for State Property Management of the Russian Federation," the resolution, passed at the AGM held recently, said.
The shares would be alloted within 12 months from the date of the shareholders' approval in the AGM. Sistema is listed on the London Stock Exchange. SSTL had earlier said they plan to list in 2010, however, as the telecom sector was struggling due to cut throat competition, the telco had shelved the plan.
However, Rozanov feels the worst is over for the telecom sector but still time is not right for SSTL to hit the market. "...What we see now is that the analysts perception and consumer perception on the telecom sector is changing and improving. But we are still not there. There is not so burning need to list business wise," he added.
"We don't want to give out our opportunity at the cheaper price if the funding is already their with us." The company, which sees itself as a strong data- services provider, is presently active in 12 circles in the country.
First Published: Oct 17, 2010 12:08 IST