Viom Networks, a Tata Teleservices and Srei group telecom tower JV, is keen on hitting the capital market in a business trust structure if Indian regulations allow it.
“If you ask me which route we prefer to raise capital, the answer is as a business trust,” Viom Networks Vice-Chairman and Managing Director Sunil Kanoria told PTI.
“We have already made presentations in opening up this route with regulators and the government. This will encourage long term investors like insurance and pensions fund participating in such infrastructure companies offering long term stable income,” he said.
A few Indian companies have raised funds in Singapore via business trust route including recently the Religare group mopping up over Rs 2,000 crore, beside Ascendas India Trust and Indiabulls Properties Investment Trust listed earlier.
In a typical business trust structure, a sponsor company transfers its cash-generating assets into the trust, which pays for the assets using proceeds raised from the IPO of its units.
The company, however, said it would not wait for regulation for the business trust structure to be in place and instead go ahead with IPO as track record on profits for infrstructure companies have relaxations for public issue.
“We will not wait and infrastructure companies have relaxation on track record on profit. We will go for IPO in the present corporate structure as we can change ourselves as business trust later when regulations are in place,” Kanoria said.
Viom may look at upto 20 per cent of stake in the IPO in combination of fresh and sponsored shares from existing shareholders.
“We have not taken a call on quantum of issue, but it could be between 15-20 per cent of the present capital,” he said.
Meanwhile, the company which was planning to break-even this fiscal is now planning to break even by 2013-14.
“We could have broken even this year (fiscal). But because many operators have gone away, so the revenue has come down. Next year (2013-14) we should break even,” Kanoria said.
Tata Teleservices holds 54 per cent, Srei group 17-18 per cent and the rest by a clutch of private equity funds.
