International BusinessUnitech Wireless raises Rs 5,000 cr for network roll out
Unitech Wireless, the joint venture between realty major Unitech and Norway"s Telenor, has raised Rs 5,000 crore as loan from State Bank of India to finance the roll-out of its network as the firm will be launching mobile services in next three months.
- CCEA to decide on Telenor"s stake rise; Unitech optimistic - FIPB clears Telenor"s proposal to up stake in Unitech - Unitech Wireless gets Rs 5k-cr loan from SBI - Unitech Wireless gets Rs 5,000 cr loan from SBI - Govt clears 10 FDI proposals worth Rs 1,123 cr - Telenor Q2 net profit slumps 61%
The company is working on the long term financing for the unlisted JV. There is no more equity required in the JV in which Telecmor will have 67 per cent stake and Unitech the remaining 33 per cent, Unitech Wireless India Managing Director Stein Eric Vellan said in a presentation.
For 2009, Unitech Wireless earmarked a capex of Rs 2,500 -3,200 crore. Howver, the company anticipates an EBIDTA loss of Rs 1,100-1,400 crore during the current fiscal.
Further, he said it will be targeting an EBIDTA breakeven in three years and an operating cash flow breakeven in five years of launch. However, it adds, it may have to accrue an operating cash loss of Rs 15,500 crore before breakeven.
Telenor, has operations in 13 countries in Europe and Asia. The deal was struck at Rs 6,120 crore for 67 per cent stake to be held by Telenor in 2008.
Vellan said the company is targeting 8 per cent pan- Indian market share.
The company is gearing up for launch in December and has more than 900 employees on board with more than 1,200 shortlisted distributors.