SSTL to defer IPO to wait for clarity on telecom policy

Sistema Shyam Teleservices Ltd (SSTTL), the telecom joint venture (JV) between Russia-based Sistema and India-based Shyam Group has deferred its plans of launching its initial public offer (IPO) and is currently waiting for clarity on the telecom policy which is slated to come by October this year.

“"We are waiting for the telecom policy to come before we can decide on the fund raising plan including IPO,” said Vsevolod Rozanov, president and CEO, SSTL.

The move to defer the IPO has been made amidst the lack of clarity in the telecom policy and the environment of uncertainty caused by the arrest of former telecom minister A Raja. SSTL had made its intentions of listing on the Indian bourses clear last year and had earlier stated that it planned to list by December 2011.

The telecom sector which has come under intense scrutiny lately on the back of the 2G scam, where the comptroller and auditor general (CAG) estimated loss of Rs 1.70 lakh crore to exchequer. The sector is currently the focus of several investigations in the context of allocation of 2G licences.