Mumbai, Aug 27: The Industrial Development Bank of India (IDBI) has decided to take an equity stake in Hughes Telecom, which is coming out with a Rs 750 crore public issue. The board, which met in Delhi on Aug 25, decided to invest Rs 50 crore to Rs 100 crore, depending on the pricing of the issue being offered through book-building route, IDBI sources said on Saturday, adding that the approval would be `subject to certain conditions.'Hughes Telecom is to announce on Sunday its floor price for the issue, the proceeds of which would be used to fund a basic telecom network roll out in Maharashtra, excluding Mumbai, with a total of 3.9 lakh lines by 2004. IDBI also approved revalidation of the $45 million made earlier to the Rs 2,840 crore Roza power project in Shajehanpur district of UP.
ICICI and IDBI are part financing the project, which has a 70:30 debt-equity ratio. The Aditya Birla group holds 27% and Powergen 26% stake in the 578 mw power project, while the rest is held by a banking consortium and the public. The institution has also sanctioned corporate loans to Tata Chem (Rs 80 cr) and Century Textiles (about Rs 50 cr), the sources said.(PTI)
The sources said the board had also decided to subscribe partly to the bonds issue of West Bengal Infrastructure Development Corporation. (PTI)
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