Sistema buys 10% stake in Shyam Telelink

In another round of consolidation, the Russians have arrived to participate in the Indian telcom services sector. Russian telecom major Sistema has acquired 10 per cent stake in Shyam Telelink - the basic telecom services provider in the state of Rajasthan. Shyam Telelink is a group firm of Shyam Telecom.

The deal value could not be immediately ascertained. But the Russian major plans to increase the stake to 51 per cent subject to approval from the Foreign Investment and Promotion Board. The long-term plan is to take the stake up to 74 per cent, as is allowed under the FDI policy.

Shyam Telecom shares on the Bombay Stock Exchange surged nearly 20 per cent on Wednesday to Rs 96.45.

Shyam Telelinks, that provides services under the Rainbow & Citymobile brand names in Rajasthan, has applied for nationwide mobile licenses.