We cannot give any time line for IPO !!

MTS eyes10 mn users in India by December

The company expects an investment of $676 million from Russian government to come into its account within six months' time for spending in India

CMN Correspondent

NEW DELHI, INDIA: Sistema Shyam TeleServices (SSTL), a joint venture between Russian conglomerate Sistema and India's Shyam group, expects the user base of its MTS brand to reach 10 million with the launch of services in 11 new circles by the year-end. "Right now, we are operating in 11 circles and we hope for pan-India expansion by this year-end," company president and CEO Vsevolod Rozanov told reporters here Thursday.
MTS will launch its service in Andhra Pradesh and expand mobile broadband services in more than 90 cities across the country

“At present our subscribers can move around and use our service in all circles. We have decided to launch MTS service in Andhra Pradesh in second quarter of this year and few more circles in third quarter,” said Vsevolod Rozanov, president and CEO, Sistema Shyam Teleservices, while speaking to media on the occasion of celebrating one year of the company’s presence in India.

As per TRAI report, the company has more than 3.2 million subscribers in the country by the end of January.

On the occasion Rozanov mentioned that the company this year will focus on increasing business of its data services and will come up with various offers related to these services.

In the process, the company will double the number of cities to provide mobile broadband services. At present MTS provides mobile broadband services in 48 cities and by the end of the year it has plans to cover more than 90 cities.

The company will almost double its branded retail outlet across the country which is currently 300 in numbers.

Rozanov also mentioned about an anticipated investment from Russian government of $676 million which is expected to come into the company's account within six months time for spending in India.

“The Russian government has clear intension to invest in our company. Only paper work and policy formalities are left for this investment. We expect that to happen in six month. We have got all kinds of legislative works completed in India,” said Rozanov.

After getting the investment from the government of Russia, Shyam Sistema will work out on shareholding structure and then get listed on Indian stock exchange.

“We cannot give any time line for IPO. After getting investment money in our account, we will work on shareholding structure of the company,” said Rozanov.

He added that amount that company will raise has not yet been decided but will depend on market condition at the time of IPO.