In a landmark transaction, Videocon Industries Ltd today sold its telecom spectrum in Gujarat and UP (West) circles to Idea Cellular for Rs 3,310 crore. The funds will be used by the company to retire its debt and improve its financial metrics.
A top official of Videocon Telecommunications, a subsidiary of the flagship Videocon, said it is also in talks to sell its spectrum in UP (East) and Bihar circles at a valuation of Rs 3,500 crore in the next round.
The company is also in talks to sell the Madhya Pradesh and Haryana GSM business for Rs 4,000 crore by early next year, including spectrum, subscribers and network, the official said. The company has operations in 7 circles in India.
On Tuesday, Videocon’s shares closed 2% down at Rs 130 a share.
The move to sell spectrum, or radio waves that are used for wireless telephony and data transfer, by Videocon is part of the group’s strategy to reduce its net debt worth Rs 39,154 crore as on December last year to more manageable levels.
Last year, the company had sold off its gigantic gas fields in Mozambique to Indian public sector companies for $2.5 billion.
The group has also finalized the sale of part of its stake in insurance joint venture to its partner Liberty Mutual at a valuation of Rs 8,000 crore for the entire JV. Besides, it has lined up real estate worth Rs 5,000 crore for sale in India.
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