S Tel raises $50 million, sells 11% stake to GB Corp

S Tel raises $50 million, sells 11% stake to GB CorpBahrain-based Islamic investment bank- Global Banking Corporation (GB Corp) has acquired 11 per cent stakes in GSM service provider S Tell through Batelco Millenium India Company (BMIC) which already owns a 42.7% stake in the telecom firm. The move helped S Tell promoted by C Sivasankaran to raise $50 million which would be used for enhancing its telecom operations.

P Saminathan, Group President telecom, Siva Group added, "Though this fresh issue, BMIC will now hold 49% and the Indian promoters Siva Group would hold the remaining 51%."

V Srinivasan, CEO and Director of Siva Group said that the recent deal indicates strong growth potential of S Tell in the highly potential and competitive Indian telecom market. Srinivasan added, "The strategic partnership with the Batelco Group and a strong investment bank like GB Corp., will enable S Tel to make significant strides into the telecom market in India."

S Tel which already started operations in Orissa, Bihar and Himachal in December 2009 retains a subscriber base of over 4 lakh in these three telecom circles. It also owns unified access services licenses to operate in Northeast, Assam and J&K and will soon roll out services in these segments.