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Tulip Telecom looking to raise Rs1000 cr via private equity

Tulip Telecom looking to raise Rs1000 cr via private equity
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First Published: Sun, Nov 14 2010. 03 24 PM IST
Updated: Sun, Nov 14 2010. 03 24 PM IST
New Delhi: MPLS VPN player Tulip Telecom said that they are looking to raise funds to the tune of Rs1000 crore, and were looking at private equity, debt and internal accruals to do this.  The company is hoping to fund its growth plans, which  include looking at an increased focus in the enterprise data service market, by offering a broader range of products and services to clients through the roll-out of fibre – something that has led the company to become a key player in the telecom sector. They have said they will also look at growth using inorganic routes.
Also Read | WEF India Economic Summit (Full Coverage)
Promoters of the company, speaking on the sidelines of the WEF India Economic Summit, said that they were in discussions with brokers, and were keen on raising funds from the secondary market,  adding that they have seen interest from several private equity funds including KKR.
Tulip telecom is listed on the Bombay Stock Exchange and the National Stock Exchange but the chief managing director of Tulip Mr. H.S. Bedis said he felt that Tulip was too undervalued for a stake sale. “We will wait for this to correct before taking any further steps,” he said
Meanwhile, executive director of the company Deepinder Bedi,  said the firm was just becoming “cash positive,” citing this as one of the reasons for their equity price. The senior promoter, however, admitted he was touchy about his equity and dilution to a PE was still a little way off.
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First Published: Sun, Nov 14 2010. 03 24 PM IST