STel to raise Rs 2000 crore for its expansion

STel to raise Rs 2000 crore for its expansionSTel, a consortium of Siva group and Bahrain Telecom, has announced raising of Rs 2,000 crore for its telecom venture. The company has licenses to operate in six circles, which includes Himachal Pradesh, Orissa, Bihar, Jharkhand, Jammu and Kashmir and Assam.

It should be noted that promoters have already contributed Rs 1253 crore in the equity capital. The balance amount worth Rs 953 crore would be raised through eight public sector banks led by IDBI. The funds would be utilized over two to three years.

Shamik Das, CEO of STel said, “With the successful financial closure, we are set to launch our services in six circles over the current year and early next year.”

Presently, Bahrain Telecom holds 49 per cent stake in STel while Siva group holds the balance 51 per cent stake in the entity.