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Shyam Telecom zooms 20% second day in a row

The Russian telecom operator Sistema JSFC has sought government approval to raise its stake up to 100% in its Indian unit Sistema Shyam Teleservices.

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SI Reporter Mumbai
Last Updated : May 08 2014 | 3:01 PM IST
Shyam Telecom is locked in upper circuit for a second consecutive day, up 20% at Rs 35.40 on the BSE, on reports that the Russian telecom operator Sistema JSFC is planning to raise its holding in Sistema Shyam Teleservices Ltd.

“The Russian telecom operator Sistema JSFC has sought government approval to raise its stake up to 100% in its Indian unit Sistema Shyam Teleservices Ltd,” the Economic Times report suggests.

In its application to the foreign investment promotion board (FIPB), Sistema has sought approval to increase foreign equity beyond 74%.

Sistema JSFC, together with the Russian federation, holds about 74% in the Indian subsidiary, and the proposal, once approved, will pave the way for the Russians to buy out Indian partner Shyam Telecom, which holds the balance stake, added report.

The counter has seen huge trading activity with a combined 611,375 shares changing hands so far as against an average sub 200,000 shares that were traded daily in past two weeks. There are pending buy orders for 53,000 shares on the NSE and BSE.
 

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First Published: May 08 2014 | 2:56 PM IST

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