Speaking to The Financial Express, Jardine Fleming's disinvestment head, Roddy Sale, said: "The due-diligence exercise is currently on and we have identified some international and domestic telecom players."

According to corporate banking sources, international telecom players who have shown interest in picking up a stake in the company are Prudential Corporation of UK, LB Bank, etc.

The Essar group, promoter of Sterling Cellular, has valued the Delhi metro licence at close to $325 million. The Ruia's have appointed IL&FS to help the cellular venture achieve financial closure.

Sterling Cellular has a debt-equity ratio of 1:3, with equity of $150 million and $50 million as debt. At present, Essar holds 51 per cent stake in Sterling Cellular, Swisscom 32.56 per cent and C Sivasankaran 16.40 per cent.

Sterling Cellular holds three non-metro cellular licences in the name of Aircel Digilink for Rajasthan, Haryana and Uttar Pradesh. The company also has an agreement with JT Mobile Punjab through which it operates the Punjab cellular licence, which has been terminated for non-payment of dues. The company also has a licence in the name of Essar Commvision for setting up basic telecom services in Punjab.

At present, the basic licence is in jeopardy as the company did not pay liquidated damages on August 15, 1999. The company has given the required legal undertaking for the basic circle licence to the high court and withdrawn its cases against the Department of Telecommunications.