24/10/2015

VideoconTelecomtosplitintosixcompaniesbycirclesTheEconomicTimes

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VideoconTelecomtosplitintosix
companiesbycircles

SPOTLIGHT
Techtalk

What'snewinbanking

PostaCom m ent

ByKalyanParb at,ETBureau|14Oct,2015,05.32AMIST

READMOREONVideocon|VenugopalDhoot|MadhyaPradesh|KPMG|Demerger|Bihar|BhartiAirtel

KOLKATA:Videocon

BSE0.11%

Industries
1

Ltd(VIL)planstodemergeitstelecom
business,VideoconTelecomLtd(VTL),into
sixnewgroupcompaniesbycircles,inthe

CloudrainscashonAmazon,
Google&Microsoft

runuptoexitingthemobileservices
businessinfouroftheseincludingUPEast,
PostmentotutorruralIndiaon
UPWest,BiharandGujarat,threepeople

bankingsystem

Thetriosharesarelianceontechthat
comesfrompowerfulmachineslashed

awareofthemattertoldET.
Govtlookstoutilisepostmentoteachrural
peoplehowtousebankingservices&

togetherinbunkersthesizeoffootball
fields.

accessstatesponsoredfinancialinclusion
Thedemergerproposalislikelytobe
schemes.
consideredatVIL'snextboardmeeting

HowbigdatahelpedSnapdealdeliver
duringDiwalisalesfrenzy
AppleWatchtolaunchinIndiaon
November6

Most
Read

Most
Shared

Most
Commented

JapanoffersIndiasoftloanfor$15billionbullettrain
inedgeoverChina
TopecommercefirmsFlipkart,Amazon,Snapdeal
shunUP,Uttarakhandposttaxhassles
AmazonsIndiabusinessjumpsfourfoldDiwali
salesgoingreallywell

slatedforendofthismonth,oneofthe
peoplesaid."Undertheproposeddemerger
exercise,thesixnewcompanieswillissue
equitysharestoVTL'scurrentshareholders,"
thispersonsaid.
LossmakingVideoconTelecomisfully
ownedbygroupentities,ofwhichover78%
isheldthroughgroupholdingcompanies,
VideoconIndustriesElectronicsLtd
(68.34%)andJTSPL(10%).Parent
company,VideoconIndustries,holds
14.52%.Itisbeingadvisedbyglobal
consultantKPMGinitstelecombusiness
demergerplan.

ThedemergerproposalislikelytobeconsideredatVILsnext
boardmeetingslatedforendofthismonth,oneofthepeople
said.

RelatedCompanies
Videocon
IndustriesLtd.

Addto
portfolio

Addto
watchist

BhartiAirtel
Ltd.

BSE NSE

0.15(0.11%)

Outlook

Outlook

+ve

ve

12.70(3.42%)

ETSPECIAL: Lovevisualaspectofnews?Enjoy
thisexclusiveslideshowstreat!

5keystepsRailwayshastakentofasttrack
implementationofprojects
Governmentplanstofocusonfinancialliteracy
postmentotutorruralIndiaonbankingsystem
More

NottobeMissed
PakistantoactagainstLeT
nondeal,orUSrolein
Kashmir

5keystepsRailwayshas
takentofasttrack
implementationofprojects

MarutiSuzukiBaleno:Premium
hatchbacktotakeonElitei20,
Jazz

VideoconTelecomisamongthesmallesttelecomoperatorsinthehighlycompetitive
telecomindustry,operatinginsixcircleswithover8millioncustomers,lessthanafifthof
anotherregionaloperatorTelenorIndiawhichoperatesinsixcirclesbuthascloseto50

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24/10/2015

VideoconTelecomtosplitintosixcompaniesbycirclesTheEconomicTimes
11psychologicaltrickstoget
peopletodowhatyouwant

millionusers,withleaderBhartiAirtel

BSE3.42%

atroughly233millionusers.

Videocon'sPunjabmobileoperation,whereithasanadditional3millioncustomers,isrun
throughQuadrantTeleventuresLtd,aseparatewhollyownedtelecomarm.
Advert:Areyoufabulousin
your40s?Nominateandwin
aniPad

81smartphonesgetting
Android6.0Marshmallow

India,Chinakickoffjointanti
terrorexercise'HandinHand
2015'

TheVenugopalDhootownedcompany,whichnarrowedoperatinglosstoRs47crorefor
thesecondquartertoSeptember30fromRs81.3croreintheyearagoperiod,hasbeen
tryingtoprogressivelyexitthespectrumdependentindustryforawhileandhasbeen
exploringsellingitsairwavesthroughthetradingroute,rulesforwhichwereannounced
Tuesday.Sourcessaidthecompanyisseekinganenterprisevaluation,whichincludesthe
debtofaroundRs10,000crore,forVideoconTelecom.
However,withthemovetotradeairwavesnotimmediatelyfructifyingoverdifferencesin
valuationexpectationsandambiguityintaxrules,theDhootsfeel"circlebycircleM&Adeals
mightbeamorepragmaticoptionforexitingkeymarketssuchasUPEast,UPWest,Bihar
andGujarat,forwhichthereareseveraltakers,"saidthesecondpersoncited.

VideoconTelecomhascloseto2.6millionusersinthesefourcircles,whicharelucrative
ThreewaysSteveJobsmademeetingsinsanely
productive
marketscontributing22%toindustryrevenue,andthusfairlyattractiveasanasset.Itholds
liberalised1800MHzspectruminUPEast,UPWest,Bihar,Gujarat,MPandHaryana,which
canbeusedtooffer4Gservices.
Whatyoucandotopaylower
premiumforyourtermlife
insurance

"Demandforits4GairwavesismaximuminUPEast,UPWest,BiharandGujaratcircles,
whicharedenselypopulatedregionswithcomparativelylowerteledensity,andhencewith
themaximumrevenuepotential,"saidthethirdpersoncited.
Thecompanythoughhasnoimmediateplanstoexitthemobileservicesbusinessin
Haryana,MadhyaPradeshandPunjab,whereithasover8millioncustomers,insiderssay.

Gainers
BSLLtd.

64.20 10.65 19.89

54.10

64.25

DeepakRavindran:Adropout
whoisnowhiscollege's
biggesthirer

Withanincreasein
awareness,companieslike
MotherDairy,ITCstartselling
itemsonsafetyplank

Lifestagesandinvestments
(Infographic)

Akeyrationalebehindthedemerger,intherunuptoanexpectedM&Adeal,isthat
Videocon'sownersbelievespectrumtradingmayproveamoreexpensiveoptionasany
airwavestradingdealwouldentailheftyadditionaltaxpayouts,equivalenttonearly14%of
transactionvalue.
VideoconGroupchairmanVenugopalDhootandVTL'schiefexecutiveArvindBalididnot
replytoET'semailsontheproposeddemergerofthegroup'stelecombusiness.
AnemailedquerytoKPMGalsoremainedunansweredatpresstime.InJanuary,Dhoothad
toldETthatVideocon'stelecomarmhadreceivedfeelersfromaleadingMexicancarrier
andanIndiantelcolookingtobuy49%stake.
VideoconTelecomhasalsoreportedlybeenapproachedbyNorway'sTelenorASAfora
stakesalethoughnoneofthepartieshaveconfirmedanytalks.

ConsolidationofantiBJPfront
includingCongresslikelypost
Biharelections:CMNitish
Kumar
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