Kolkata, April 21 (IANS) Srei Infrastructure Finance Limited on Thursday announced it has received a total amount of Rs.2,931 crore for selling its stake in Viom Networks Limited to American Tower Corporation (ATC).
“The overall transaction amounting to over Rs.7,600 crore, resulted in a total foreign direct investment inflow of Rs.5,856 crore into the telecom infrastructure of the country, out of which Srei has received a total amount of Rs.2,931 crore; which will spur economic growth, besides fostering inclusiveness and equity,” the company said in a statement.
Earlier in the month, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the transaction wherein ATC Asia Pacific Pvt Ltd, Singapore acquired 51 percent equity shareholding in Viom.
The transaction is one of the largest foreign direct investments in the Indian telecom sector in the last few years, the company said.
“Post the receipt of all regulatory approvals, the transaction has been completed and wehave now received the entire consideration for our stake sale.
“This will lead to substantial cash inflow into Srei, which will lower its debt and reduce interest cost, thereby augmenting capital and improving future profitability,” company’s vice chairman Sunil Kanoria said.
The Kolkata-based infrastructure company, along with other shareholders of the telecom tower entity, had entered into a definitive agreement with ATC on October 21 last year, for selling its stake in the company.
The tower company owns and operates over 42,000 wireless communications towers across India.