GTL to raise Rs 340 cr

MUMBAI: GTL Infrastructure, a provider of passive telecom infrastructure, is planning to raise Rs 340 crore

through a rights issue that would be open for subscription in the next two-three months.

The company, which is a subsidiary of telecom solutions provider GTL, intends to use the proceeds for its

pan-India network rollout.

"The issue will hit the market after regulatory and statutory approvals, and it might take another 60-90 days. The record date will be announced after receiving regulatory and other statutory approvals," GTL infrastructure

chairman Manoj G Tirodkar said after the company's board meeting here today.

Tirodkar, who is also the chairman and managing director of GTL said, "The Indian telecom industry is

witnessing rapid growth with the initiatives taken by the government and the overwhelming demand for telecom infrastructure from the telecom operators, we see tremendous growth potential countywide in this segment in terms of requirement for telecom infrastructure. To address this huge opportunity, we have planned to raise capital through rights issue, to enable the existing shareholders to participate in the growth of the company."

The company's board has approved a rights issue at par (Rs 10 per share) in the ratio of 1:1 (one rights share for every share held).

GTL holds a 41 per cent stake in GTL Infrastructure, while Tirodkar holds a 10 per cent stake. Institutions like

IDFC and others hold the remaining stake in the company.

About 80 per cent of the issue has been reserved for institutional investors and the remaining 20 per cent for

retail investors. The company is planning to rollout a passive telecom network of 6,700 towers with an

investment of Rs 2,030 crore in phases, and the proceeds from the rights issue would also be used for this, he said.

The board will also convene an extraordinary general meeting to get shareholders approval for increasing the

authorised share capital of the company and issuance of shares.

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