Independent Mobile Infrastructure Mauritius Ltd, a telecom infrastructure provider, has sought the Foreign Investment Promotion Board's approval for investing up to Rs 3,000 crore ($674 million) in India to tap the rapidly increasing opportunities in the world's fastest growing telecommunications market.
It is the second company after American Tower Corporation to seek permission to enter the telecommunications infrastructure space, an industry projected to be worth about $20 billion by 2010.
At present, India has over 138 million wireless subscribers and is adding over 5 million every month. There are around 10 major telecom companies in the country, including state-owned BSNL and MTNL, apart from private companies like Idea, Hutch and Reliance Communications. The country has 23 telecom circles.
There are over 90,000 cellular towers now and another 200,000 will be needed in the next two years. The FIPB had cleared American Tower's proposals to set up a wholly-owned subsidiary in India.
In an application filed with the FIPB last month, the private company has sought the board's clearance for the investment, which will be made over 1-5 years. The investment for its foray into Indian telecom infrastructure will be made depending on the capital requirements.
Independent Mobile Infrastructure Mauritius Ltd, apart from diluting promoters' stakes, would also look at issuing shares to raise the capital, it said.
At present, the company has a paid-up share capital of 10,000 shares of Rs 10 each. It was held in the ratio of 99.99 per cent and 0.01 per cent by two individuals, Venkateswarlu and Chandra Padmasri, respectively, the company said in an FIPB filing.