MOSCOW -(Dow Jones)- Sistema Shyam TeleServices Ltd.'s (SSTL) President Vsevolod Rozanov said Thursday that the Indian government's new telecommunications policy expected in October would influence its decision on whether to hold an initial public offering in the country.
If the policy is more favorable to the Indian telecoms market than the current policy, the company may set a date for an IPO as soon as six to nine months after the policy is issued, Rozanov said.
Sistema Shyam, an Indian unit of Russia's OAO AFK Sistema (AFKS.RS), now has a market share of 1.38%, which is expected to grow by 0.5 percentage point annually, taking it to just under 4% within five years, he said.
The company's net profit in the second quarter of 2011 was practically unchanged at 6.575 billion Indian rupees ($142 million) compared with a year earlier. Its operating income before taxes, depreciation and amortization margin fell from -627% to -236% over the same period, in line with the company's plans, Rozanov said.
Sistema Shyam plans to be in the black in the last quarter of 2013.
AFK Sistema owns 56.68% of Sistema Shyam, India's Shyam Telecom owns 24%, the Russian government's Federal Agency for State Property Management of the Russian Federation, or Rosimushchestvo, owns 17.14%, and other shareholders own 2.18%.
India's largest phone providers include Bharti Airtel Ltd. (532454.BY), Bharat Sanchar Nigam Ltd. (BSNL), Vodafone Essar Ltd. and Reliance Communications Ltd. (532712.BY).
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