Tata Tele..............

Well Friends,
These first post came on front page of ET yesterday and the second post came in todays ET on front page.Read them properly and then read my comments:

1)Tata Tele to buzz PEs for $1 b :
India Inc Reopened Its Deal Diary With Fresh Fervour.While Cement Majors Get Ready To Mix,A Telco Is Ringing Investors For Capital
R Sriram & Rashmi Pratap MUMBAI
TATA Teleservices is planning to raise more than $1 billion by selling a chunk of its equity to private equity and strategic investors in one of the largest deals in the telecom industry in recent times. India’s second-largest CDMA operator is willing to sell 15-30% to financial and strategic investors to raise money for its expansion in both CDMA and the soonto-be-launched GSM services, people close to the transaction said. This will be one of the largest transactions in the telecom industry in recent times. Bharti Infratel, the wireless tower business of Bharti Airtel, raised around $1 billion from investors such as Temasek in December last year. The Tata Tele deal, which is being run by Lazard, could be bigger than that. Tata Tele wants to bring in a strategic investor and some PE funds. The amount of stake involved could be as high as 25-30%, a person involved in the transaction said. “Tata Teleservices continues to seek appropriate and value-enhancing opportunities that meet its overall business objectives but as a policy, Tata Teleservices doesn’t comment on market speculation,” a Tata Tele spokesperson said. Israeli telecom firm Bezeq is also learnt to be among those interested in buying a stake in TTSL. Bezeq had entered India in the mid-90s by way of a joint venture with HFCL. In 1999, it sold its stake in Fascel (the cellular operator in Gujarat) to Hutchison and left Indian shores. It is now planning a comeback to the world’s fastestgrowing telecom market. Singapore-based Temasek and C Sivasankaran currently hold 9.9% and around 8%, respectively in TTSL. Tata Tele needs funds for GSM rollout in 20 circles
CHENNAI-BASED tycoon Sivasankaran bought over 8% stake in TTSL for Rs 1,200 crore from Tata Sons in March 2006 while Temasek had bought the stake for around Rs 1,500 crore. Siva, as Sivasankaran is widely known, is looking to sell his stake, according to sources familiar with the matter, but has not done a deal as yet. He is believed to be asking for Rs 50 per share, a price that has put off most prospective investors. TTSL, which has a subscriber base of nearly 25 million, offers CDMA-based services in 20 out of 23 telecom circles in India. Early this month, it also received spectrum to roll out operations in the remaining three circles of Assam, North East and Jammu and Kashmir, making it the third pan-India operator after Bharti Airtel and Vodafone Essar. In Maharashtra, including Mumbai and Goa, TTSL’s listed subsidiary TTSL (Maharashtra) provides telecom services. TTSL needs funds to expand its telecom services. Besides starting operations in the three new circles, the telco has applied for GSM spectrum in 20 circles of India, for which it has already received licences. It will, therefore, need more funds to start GSM services as and when spectrum allocation is done. On Tuesday, it received spectrum in Tamil Nadu and Chennai and plans to roll out services before the year-end. TTSL is the fastest-growing service provider, according to a report by the Telecom Regulatory Authority of India (Trai). Its current market share is nearly 10%. “With increasing market share and future investment plans for network expansion, TTSL has an opportunity to dilute equity stake at a premium,” said Ovum India head (IT & Telecom) Alok Shende. TTSL is, however, still making losses and needs funds for growth. “Tatas have to dilute stake to pump in more money into their telecom venture,” said another analyst on condition of anonymity. Last month, TTSL entered into a brand franchising agreement with Virgin Mobile to offer services of the British company over its infrastructure. “While TTSL has spent a lot in brand building and innovative schemes in the past 2-3 years, it needs to do more to improve market share,” the analyst added.


2)ISRAELI CO EYES 10% IN TATA TELE
Israeli investment firm Koor Industries is interested in buying a 10% stake in Tata Teleservices for up to $720 million, report Kausik Datta & Rashmi Pratap in Mumbai. Koor, controlled by Israeli banking and telecommunications magnate Nochi Dankner, has submitted an ‘initial letter of intent’ for a possible investment of $577-$720m.




My Comments:
I gave a call of Tata Tele at mmb at Rs 27/-.and after that it made a high of Rs 65 and retraced back to23.50 and now again up to Rs 33.80...
Raima and some other friends were asking what to do with Tata Tele.I told them to hold it.
Well, now the news are out.
Now the analysis of the above two post.....
In the second post Israeli investment firm Koor Industries is ready to pay $720 mn for 10% pie....
1)that gives the value of $7200 mn for the company.....as 10 % is worth $720 mn then 100% means $7200 mn...means RS 28,800 cr valuations in Rs.....
2) Now it means that for every shares it is worth Rs 152.39...according to the valuations.... Israeli investment firm Koor Industries ready to pay for...
I am not going to write how I came to this figure....calculate by your self........
Hence I do not see much problem for Sivasankaran for selling his stake at Rs 50/- which he wants....
Tata Tele is also having Tele Towers and they wants to divest some stake in that as well.
I am not writing more as One can read all these things in the above two articles....
I hope those who are holding Tata Tele will have nice sleep now onwards...
As I repeteadly write,hold for 1-2 yrs...... any stocks...
Ahmed and many others were sceptic on Artson Eng,but Ahmed use to write it many times, as it was not getting listed and when get listed it went down horribly.The point here to be noted is that, when Artson Eng is moving in Constant UPPER circuits and it is over 100% from recent low of Rs 22/-,Ahmed is not talking about it...that Rajeev, you were so true on Artson Eng....we were not having the neccesary patience........to hold it.....
Anyway, that is what people are...never remember the successfull call but will point to falied calls immidiately, though they are not actually failed calls.........