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HFCL to divest entire stake in Fascel

Our Bureau

MUMBAI, Sept. 18

HIMACHAL Futuristic Communications Ltd has decided to disinvest the entire 10 per cent shareholding in Fascel Ltd, the Hinduja-group promoted cellular service provider in Gujarat circle.

HFCL has informed the Bombay Stock Exchange that the shares of Rs 10 each would be sold at a premium of Rs 10 per share.

This comes in the wake of the Government's announcement last month that it would lift the requirement of a minimum 10 per cent holding by promoters in telecom companies to allow easy exit for minority shareholders.

However, Mr K.V. Seshasayee, Chairman, Fascel, said the Government's announcement had not yet come into effect and that the regulations still did not allow for immediate divestment. ``The divestment can happen only after December when the lock-in period for shareholders in the company is over.''

Fascel would, however, be glad to go with HFCL on the matter and the companies would have to jointly approach the Department of Telecommunications to get the divestment approved, said Mr. Seshasayee.

According to the regulations, an Indian promoter in a telecom company could only sell to another Indian company. The companies would consult with Kotak Mahindra on the placement of these shares, he added.

When the minimum 10 per cent stakeholding requirement for a telecom company promoter was removed, it would help promoters not actively interested in the business to exit easily, said Mr Seshasayee.