Data Access plans $22 million IPO

NEW DELHI: Data Access India Ltd, the country's second-largest provider of overseas calls, plans to launch an initial public offering worth about a billion rupees to fund expansion, the company said on Monday.

The firm, 24 percent owned by Hong Kong's dominant fixed-line telephone operator PCCW Ltd, did not say when the offering would hit the market.

Analysts say up to $13 billion of share issues are expected in India this year, as companies ride a booming stock market and 30-year-low interest rates to lure investors to equity.

"Data Access proposes to offer 50 million fresh shares," the company said in a statement, adding the offer would be priced through a book building route and documents had been filed with the market regulator.

"The company plans to utilize the net proceeds for expanding and upgrading its international long distance telephony network, meeting long term capital needs and repaying external commercial borrowings," it said.

Data Access, which has a paid-up share capital of 1.49 billion rupees, is 74.5 percent owned by Indian firm SPA Enterprises Ltd. Employees hold 1.5 percent.

PCCW Ltd's stake in Data Access, which has a 30 percent share of the growing overseas calls market, would fall to 16 percent after the initial public offering and SPA Enterprises' holding in the firm would drop to 57 percent.

(C) Reuters