Atria Convergence hires i-banks for IPO
MUMBAI:ATRIA Convergence Technologies Pvt. Ltd (ACT), a broadband services provider controlled by private equity firms TA Associates and True North, has hired investment banks to help it raise ₹1,500-2,000 crore through an initial public offering (IPO), said two people aware of the development.
“The company has recently appointed a syndicate of investment banks and has started work on its plans to go public,” said one of the two people cited above, requesting anonymity as he is not authorised to talk to reporters. “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.” Mint could not ascertain the names of the investment banks hired by ACT.
Founded in 2000, the broadband service provider has around 1.5 million subscribers across Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, and Delhi.
It offers high-speed Internet over fibre optic cables and highdefinition television.
TA Associates and True North invested $500 million in the company in 2015 to acquire a majority stake. For True North, it was the second investment in ACT. The transaction saw its fifth fund— Indium V—buy the stake held by one of its previous funds.
As of March 31, 2017, True North and TA owned 93% in ACT, with the two investors holding 56.4% and 37.3% stake respectively, data from the firm’s filings with the registrar of companies (ROC) shows.
According to the second person cited above, the initial public offering is likely to see a total dilution of around 25% stake, and will value the company at a little over $1 billion.