Sistema Shyam Teleservices mulls IPO

Sistema Shyam Teleservices (SSTL) today said it is planning to come out with an initial public offer (IPO) and will give shape to the issue in the next six or seven months.

The telecom operator also plans to launch smart phones with CDMA technology by April this year.

We are evaluating market conditions and will be ready technically in six or seven months times, Rozanov told reporters, SSTL President and CEO Vsevolod Rozanov told reporters here.

SSTl is a JV company between Russia's Sistema and Shyam Group of India. Sistema is a majority shareholder in SSTL with 73.71 per cent equity. While, Shyam group has 23.79 per cent stake, the rest 2.5 is held by other investors.

SSTl has spectrum to provide mobile telephony services and plans to launch smart phones with CDMA technology by April in all the circles it currently operates.

We may launch it bundled with CDMA raging between Rs 5,000 and Rs 30,000, Rozanov said. The company has so far invested around $1.5 billion in the infrastructure needs of the $2.7 billion that SSTL plans to invest in the next five years, SSTL CEO said.

The rollout of MTS through SSTL will be completed by the end of this year and services in Andhra Pradesh will be launched in three months, he said.

Besides, the company also plans to launch services in Haryana, Maharashtra and Goa in the next few months. Though, the charges may vary state to state, he added.