Unitech to sell up to 50% stake to telecom ally

Real estate major Unitech., which has acquired licences to offer telecom services in 22 circles in the country, will sell 10-50 per cent stake to a foreign company in its telecom services operations, a senior company official said.

The company is in talks with various foreign players for an equity tie-up for the same, he said.

"A lot of foreign companies already have tie-ups with Indian companies for various operations. We too are talking to a few for prospective partnerships.

We will give the foreign partner 10-50 per cent stake," the official said.

As per existing guidelines, foreign direct investment of up to 74 per cent is allowed in telecom services.

"We will tie up with only one company for all the seven licence holders," the official said.

The company is yet to begin talks with telecom equipment manufacturers though the official confirmed receiving queries from vendors.

On Unitech's plans to raise $1 billion to fund its telecom operations, he said the company is revising its programme due to the meltdown in global markets.

"We are having a re-look at our original plan. Because of the meltdown in global markets, we may be forced to re-price our fund raising plans," he said.

Unitech, which had applied for 22 circles through seven different companies, is among the nine new entrants (seven Unitech companies considered as one) that acquired the licences on Jan 10.

There are 22 circles in the country, each of which requires a separate licence.