Abhishek Securities

The Competition Commission of India (CCI) has approved the proposed merger of Sistema Shyam Ltd's operations into Reliance Communications, paving way for the first major consolidation in the intensely competitive sector since 2009. ET had first reported in May last year, that RCom was in talks with SSTL for a possible takeover in an all-stock deal, worth around Rs 4,500-5,000 crore that could give the latter's shareholders a stake of around 10 per cent in the merged entity. Prior to the approval, the Bombay High Court has admitted an application seeking a merger between RCom and SSTL, the telecom unit of Russia's Sistema JSFC, after which the the court had asked RCom to convene a meeting of shareholders on March 8. The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high rev...

The Bombay High Court has admitted an application seeking a merger between Reliance Communications (RCom) and Sistema Shyam Teleservices, the telecom unit of Russia's Sistema JSFC. The court has asked RCom to convene a meeting of shareholders on March 8, the Anil Ambani-run company said in a release on Monday. RCom plans the merger with Sistema, which operates the only CDMA network in the country, as the first of a series of consolidation exercises.  The transaction will add high data users to RCom's client base and give the company sufficient airwaves to move its CDMA customers and free up existing airwaves for trading. RCom recently paid the Department of Telecommunications Rs 5,384 crore to liberalise airwaves it is currently using for CDMA so that it can trade them with Reliance Jio Infocomm.  The airwaves can be used for 4G LTE technology more effectively than those operators have at the moment, because they are in the 800MHz band, which travels farther than higher freq...

As part of the deal, Sistema will acquire 10% stake in Reliance Communications Mumbai, Nov 2:   Marking the first major acquisition in recent times, Reliance Communications (RCom) has entered into an agreement to acquire Russian conglomerate Sistema JSFC’s Indian telecom business. The acquisition will be by stock and takeover of SSTL’s spectrum in instalments of ₹392 crore a year for the next 10 years. According to sources, this pegs the deal size at about ₹4,500 crore. Under the agreement, Sistema Shyam Teleservices Ltd (SSTL), which provides telecom services under the MTS brand, will be merged with RCom. Following the acquisition, SSTL will get a 10 per cent stake in RCom. Promoter shareholding in RCom will come down to 54 per cent. Significant synergies “The combination of our wireless businesses, through the demerger of SSTL wireless business into RCom for stock consideration, will generate significant capex and opex synergies for mutual benefit...

MTS India / Shyam Sistema Telecom (SSTL) reported revenue of Rs 3.2bn, growth of 6.4% QoQ on the back of 6.8% traffic growth and 8.9% data revenue growth . After the cleanup of inactive subscribers, subscriber base contracted by 8% to 9.04mn while MOUs grew by 11% QoQ. Despite low base, SSTL traffic growth is equal to the incumbent’s growth of 5-8%. ARPU grew by 10.3%, which could be partly attributed to the inactive subscriber cleanup. Voice RPM continues to languish at a 40% discount to incumbents at INR 0.20, dropping 1.6% QoQ Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announces its unaudited consolidated financial results for the third quarter ended September 30, 2013. Key Financial & Operational Highlights for the Third Quarter of 2013 Revenues in 9* operational circles remained flat Q-o-Q, due to seasonality. Consolidated revenues decreased by 2.2% Q-o-Q to INR 2,844 million (USD 45 million) due to reduced operating footprint. Blended mobileARPU for the quarter increased by 6.8%to INR 95 on account of increase in minutes of usage following improved quality of customer base. Minutes of usage increased by 11% to 363during the quarter (Q-o-Q). Success of SSTL's data strategy is evident with non-voice revenues contributing 34.5% of total quarterly revenues, the highest in the industry. SSTL's HSD services now cover over 500 towns across 9 circles. The Company's data card subscriber base for the quarter increased b...

Mobile-phone operator Sistema Shyam TeleServices Ltd. plans to invest $3.5 billion over the next 4-5 years to expand its network in India, its president and chief executive said Tuesday. "The company plans to invest mainly for rolling out (services in) new circles as well as for expanding our data services," Vsevold Rozanov told reporters at a news conference. Russia's Sistema JSFC owns 73.71% of Sistema Shyam while India's Shyam Group holds 23.79%. The remaining stake is held by some minority shareholders. The company plans to start mobile-phone services in Mumbai and Haryana service areas by Dec. 31, Mr. Rozanov said. It currently provides mobile services on the code division multiple access, or CDMA, technology in eight of India's 22 telecom service areas and had 2.1 million users at the end of September. On a sale of fresh shares to the Russian government, Mr. Rozanov said the company is awaiting the Indian government's approval. "However...

  Sistema Shyam Teleservices (SSTL), controlled by Russian conglomerate Sistema, today announced the commercial roll-out of '3G Plus' telecom network across all its circles.  The network is used to offer high speed data services. The company, which operates under MTS  brand name, also launched a hi-tech dongle priced at Rs 1,299, that provides data speeds of up to 9.8 Mbps.  The company had recently got the third carrier or slot in the 800 Mhz spectrum band from the Department of Telecom  (DoT) allowing it to launch third generation plus services. The telecom operator had won three slots of 1.25 Mhz each in 800 MHz band, used for providing CDMA services, for eight circles in the March auction for Rs 3,639 crore.  The  3G Plus  telecom network is based on Evolution-Data Optimized (EV-DO) Rev. B Phase II technology.  "The roll out is all set to make MTS India the first telecom operator in India to provide ubiquitous 3G plus network coverage ac...

The Supreme Court today cleared the way for Sistema Shyam Teleservices (SSTL) to provide its services in eight telecom circles in which it was the lone bidder for the 800 MHz spectrum. "The applicant (SSTL) is entitled to continue services in eight circles," a bench comprising justices G S Singhvi and K S Radhakrishnan said. SSTL's counsel Vikas Singh said there was no other bidder for the CDMA service and the company participated in the second round of fresh auction after the Department of Telecommunication reduced the reserved price. Senior advocate P P Rao also informed the court that the auction has concluded and SSTL made the bid for eight circles and there was no competition. Sistema Shyam (SSTL) was the lone bidder in today's auction and it bid Rs 3,639 crore for eight circles in the 800 MHz spectrum range. The auction for 2G spectrum for GSM players held in November last year had fetched the government Rs 9,407 crore. SSTL said it won spectrum...

Indian telecommunications operator Sistema Shyam TeleServices Ltd Tuesday denied a media report that said it has shelved plans to acquire a domestic competitor Aircel Ltd and added that there has been no talks for acquisition in the first place. "Sistema Shyam TeleServices Ltd has time and again maintained that there were no plans of acquiring any telecom service provider. All such media reports were based on speculation," a Sistema Shyam spokesman said in a statement. Earlier Tuesday, The Economic Times had reported that Sistema Shyam, a joint venture between Russia-based business conglomerate Sistema JSFC and India's Shyam group, has shelved plans to buy Aircel, after failing to reach a suitable price and flop spectrum auction in November 2012. Aircel is 74% owned by Maxis Communications Bhd, with the remainder held by India's Sindya Securities and Investments Pvt Ltd. The acquisition would have helped Sistema Shyam stay in business in India witho...