Tata Teleservices is planning to raise over Rs 2,100 crore debt with the promoters planning to infuse over Rs 1,500 crore additional equity in the company to expand its operations in four circles, Delhi, Tamil Nadu, Gujarat and Karnataka.
Senior executives in financial institutions told Business Standard that the promoters, who had chipped in Rs 515 crore equity till now, were weighing various options, including induction of strategic partners, an initial public offer and further equity investment by Tata group companies, to bolster the capital structure of the company.
The capital would be brought in the next five years and the company was also in talks with investment bankers to raise debt abroad, the executives said.
The Industrial Development Bank of India was considering a proposal to sanction a Rs 250 crore term loan besides a Rs 125 crore bridge loan, the sources said.
Tata Teleservices executives refused to comment on the issue but said the funds required to meet the rollout and expansion plans in Delhi, Tamil Nadu, Gujarat and Karnataka were being tied up.
They also said the company had already invested over Rs 5,000 crore in setting up infrastructure in these circles.
The company has a subscriber base of nearly 900,000 in six circles, including Andhra Pradesh and Maharashtra.
Tata Tele is the second largest operator in the WLL limited mobility space with 260,000 users.
Apart from basic telephony services, it also offers long-distance services through Videsh Sanchar Nigam Ltd, all under the brand name of Tata Indicom.
