New Delhi: Tulip Telecom Ltd., an Indian technology company that stores customer data and provides network connectivity to the local unit of AT&T Inc., aims to complete a stake sale in its data center unit in eight weeks.
The company, based in New Delhi, expects to raise Rs 270 crore ($60.3 million) from the share sale and plans to use the funds to expand its data storage business, chief executive officer Sanjay Jain said in a phone interview.
Quite a few Indian and foreign firms are interested and we are within our time frame, he said. A decent number of potential partners are keen to buy the stake, Jain said.
Tulip, whose customers include Bharti Airtel Ltd., Alstom SA and Royal Philips Electronics NV, is seeking to tap a growing market for data centers in India, which is forecast to grow 23% over the next three years to Rs 11800 crore, according to CyberMedia Research.
The company’s shares rose as much as 2.6% in Mumbai trading before gaining 1.5% to Rs 162.25 as of 2:11 p.m.
They have declined 7.7% this year, compared with an 11% drop in the Bombay Stock Exchange’s benchmark Sensitive Index.
The company plans to sell as much as 30% of Tulip Data Center Pvt. to help expand its Bangalore facility. The 900,000 square-foot (83,613 square meter) data center will house equipment to serve mobile-phone companies that have begun to offer high-speed data services in the world’s second-largest cellular market.
The partner that buys the share in the data center business will bring expertise and help Tulip attract new customers, Jain said.
The company plans to spend Rs 650 crore in the year to 31 March, of which Rs 200 crore will be invested in the Bangalore center, he said.
Tulip’s sales grew 20% to Rs 2350 crore last fiscal year. We expect similar traction to continue this financial year, Jain said.