However, there have been denials on the part of Tata Teleservices for an IPO, but the experts are of strong opinion that company is already through with the valuations of the IPO for Tata Teleservices and is now looking forward for the brand building attempts and gain significant market proportion.
If the recent developments are providing any precursors, then it is sure that Tata Teleservices will come out with an IPO very soon. The most recent development was a business partnership with UK based Virgin mobile headed by Sir Branson. Another one was its expansion into the GSM based network and mobile business segment. All these developments strongly indicate that the Tata Teleservices company is all set to come out with an Initial Public offering.
And the reports have been positive. A recent report by the Telecom Regulatory Authority of India (Trai) mentioned Tata Tele as the fastest growing service provider, with an increase in market share to 9.7 per cent in March 2007 from 3.5 per cent in March 2004.
Obviously, the good rate of growth for Tata Teleservices and more and more new business ventures in the telecom area would need high level of funding. And which is the best place to get that funding? It’s the stock market route through the IPOs. Tata’s are a reputed brand name in India. Like Reliance, no wonder if the Tata company can gather billions from the Indian Stock Markets.
Tata Tele has offloaded a 17 per cent stake through private placement to Singapore’s Temasek Holdings and Chennai-based entrepreneur C. Sivasankaran for around Rs 2,800 crore. The deal puts the valuation of Tata Tele at around Rs 16,500 crore.
Though there is TTML, or Tata Teleservices Maharashtra Limited , which is a subsidiary of Tata Tele and is listed on the stock exchanges already, it operates only in Mumbai and Maharashtra regions.
| So if Tata Tele comes out with its IPO, it will be a valuation on the national basis. Wait for further developments! | Table of Contents |
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