SBI Caps, the investment banking arm of State Bank of India, has been appointed by state-owned Telecom Consultants India (TCIL) to find a buyer for its 30 per cent stake in Bharti Hexagon.
The TCIL move is aimed at exiting its 30 per cent stake in Hexagon to boost cash-flows to meet growing operating and capital expenditure needs. "Yes, we have been short-listed by TCIL to conduct the valuation of Bharti Hexagon. However, we are waiting for a written communication from TCIL in this connection before we begin the valuation exercise," newly-appointed Managing Director of SBI Caps, Rajnish Kumar, told PTI today. Bharti Hexagon is a unit of telecom major Bharti Airtel and runs cellular services in Rajasthan and the North East and has nearly 19.5 million customers.
The Rajasthan circle was one of Airtel's top five growth markets last month in terms of customer additions. The final mandate for the job will be given to SBI Caps after the board meeting of TCIL, likely to take place later this month. "The valuation exercise of Hexagon may take two-three months," he added. Set up in 1978, TCIL is a government-owned engineering and consultancy firm focused on the telecom sector. The company will have to get DoT permission to sell the stake.