Telecom Lead India: In a private equity deal, Indian telecom equipment maker Kavveri Telecom is set to raise $20 million through its subsidiary Kavveri Telecom Infrastructure.
Kavveri Telecom’s subsidiary provides the infrastructure for enhancing the indoor coverage in malls, hospitals, hotels among others on fixed rental to the telecom operators.
The company said that the unit has installed its equipment in nearly 37 million sq ft of mall / hotel / office space over last four years of its operations.
The company’s managing director, Shivakumar Reddy said that they are in negotiations with private equity funds to finalise the deal to raise $20 million shortly.
He added that the money will be used to ramp up their capabilities and would also fund acquisitions.
While Kavveri Telecom owns 51 per cent in the subsidiary, the promoters of the company own another 49 per cent. The private equity funding will be through a fresh issue of equity.
The parent company is also readying for another acquisition and planning to add around Rs 30 crore to its cash pool of around Rs100 crore.
According to Business Standard, the company is looking for acquisitions in Israel and Europe, and it will take the initial steps for this during the present fiscal.
The company, which derives as much as 95 per cent from the telecom sector, is looking to increase focus on the defence sector going forward, and the new acquisition will most probably address the sector.
So far, Kavveri Telecom has acquired five companies. The first four acquired companies, namely Til-Tek Antennae, DCI Digital Communications, Spotwave Wireless and Trackcom Systems International, are located in Canada and provide access to mainly North American market.
Kavveri Telecom acquires Rymsa Telecom for EUR 20 million
Last year, Kavveri Telecom announced the acquisition of Europe-based Rymsa Telecom for EUR 20 million (approximately Rs 134 crore). Rymsa Telecom was the fifth entity acquired by the company.