Viom may be first tower company to list overseas

The Kanorias of Srei and Tata Teleservices are currently mapping out a roadmap for possible overseas listing of Viom Networks, the country’s largest independent telecom tower provider.

Viom, with over 42,000 cell sites and more than 95,000 tenancies, may become India’s first such listing since the government allowed in September unlisted Indian companies to list abroad. The Kanorias, in fact, had been lobbying with the government for long for such a gateway to Indian asset-backed companies to raise capital overseas.

“We worked hard in making presentations to the government on the benefits of such a listing and were pleasantly surprised when the government actually came up with the approval. Yes, we are considering an overseas listing for Viom, but a final call would be taken only when the detailed guidelines come,” Sunil Kanoria, director of Viom, told dna.

The Kanorias own 18% and control management of Viom, which is majority owned by the Tata Teleservices with a 54% stake while the rest is with institutions like IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore.

Kanoria said there are no plans of the promoters to divest any stake in Viom, as recently reported in some sections of the media. “There have been some baseless reports, we refute them. The promoters are not selling,” he clarified.

Till now, unlisted companies incorporated in India were not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets. The door has now been thrown open to overseas listing as it will bring in foreign exchange and provide alternative fund-raising avenues to companies in order to finance capital expenditure.

Regulators like the Reserve Bank of India and the Securities and Exchange Board of India (Sebi), however, have reportedly flagged concerns that overseas listing may encourage money laundering.

Such worries might impact drawing up the fine print of the modalities to go for such a listing, and Viom would take a final decision, including which foreign market to be tapped, only after the details of the regulations are announced.

Domestic markets remain choppy and skittish as the experience of investing in Bharti Infratel, the country’s maiden IPO of a telecom tower firm, last December hasn’t been quite encouraging for investors. Yet, Kanoria sees appetite of overseas investors for Viom, which turned around in 2012-13 on an income base of Rs 3,200 crore. “We continue to do well in the current financial year after turning around last year,” Kanoria said.

With the adverse impact of business downsizing of its key client, Uninor, behind, Viom last year bagged Bharti, Vodafone and Idea as customers and also improved operational efficiency through severe cost cutting measures while efforts are on to bring in innovations like low-cost towers.

Raising funds
The Kanorias own 18% stake and control management of Viom, which is majority owned by the Tata Teleservices with a 54% stake while the rest is with institutions.

Domestic markets remain choppy and skittish as the experience of investing in Bharti Infratel, the country’s maiden IPO of a telecom tower firm.

Viom last year bagged Bharti, Vodafone and Idea as customers and also improved operational efficiency through severe cost cutting measures.