Ortel to sell equity to NSR

NEW DELHI: Ortel Communications will raise Rs 60 crore by diluting equity to private equity firm NSR-PE Mauritius. The company plans to use the money for expansion. According to documents submitted to the Foreign Investment Promotion Board (FIBP), Ortel has aggressive expansion plans both within and outside Orissa over the next 3-4 years.

The company plans to raise Rs 280 crore in the form of debt and equity. The Rs 60 crore that it is raising by diluting stake to the Mauritius-based private equity firm is the part of the Rs 280 crore it plans to raise.

This will be the second private placement in Ortel. Commonwealth Development Corporation owns 14.57% in the company through its subsidiary South Asia Regional Fund.

Orissa State Electronics Developments also has a token equity participation in the company.When contacted, Ortel’s founder Jagi Panda refused to comment.

The company’s core business is building hybrid fibre coaxial (HFC) communication network to provide a range of services like cable television and high speed internet access among others. The company has also applied for a telecom licence.