MUMBAI: Private equity firms TA Associates and True North controlled fibre broadband internet service provider (ISP) Atria Convergence Technologies (ACT) has hired investment banks in order to raise Rs 1,500-2,000 crore through an initial public offering (IPO).
According to a report in English business daily Mint, Atria has appointed a syndicate of investment banks and has started work on its plans to go public. The proposed IPO will be a mix of fresh fundraising and stake sales by both the existing private equity investors TA Associates and True North.
The report further stated that the IPO is likely to see a dilution of 25% stake at a $1 billion.
In 2015, TA Associates and True North had acquired a majority stake in Atria for $500 million from India Value Fund III. TA and True North held 93% stake in ACT, as of 31 March 2017.
ACT offers high-speed Internet over fibre optic cables and high-definition television. It has around 1.5 million subscribers across Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, and Delhi.
The company’s revenue increased to Rs. 828.65 crore in FY16 from Rs. 539.63 crore in FY15. The operating margins improved to 41.96% in FY16 from 37.02% in FY15 on account of increase in Average Revenue per user (ARPU) in broadband internet business.
ACT is a leading provider of wired broadband service to retail consumers over the last mile fiber network. The company services nearly 1.5 million customers in 5 states and 12 cities in India. ACT uses the latest in optical fiber technology to offer among the highest connectivity speeds in India.