Sistema Shyam IPO Review

 

Sistema Shyam IPO Review

Sistema Shyam company is planning to hit the stock market in the second half of year 2011. Let us review this IPO.

Sistema Shyam is the joint telecomm venture between the Sistema and Shaym.

Sistema is the  largest public diversified financial corporation in Russia and the CIS, which manages companies serving over 100 million customers in the sectors of telecommunications, high-tech, oil and energy, radio and aerospace, banking, retail, mass-media, tourism and healthcare services.

Sistema shyam is the joint telecomm venture between the Russian government Sistema and Indian Shyam group. It is basically the 73.7:23.7 partnership. Means the Russian government owns 73.7% and Shyam group owns 23.7% in the company.

Right now Sistema will sell its 20% stake in the company to Shyam group for US $ 600 million and reduce its equity holding to 54% and after that the company will hit the Indian stock market in the second half of the year 2011.

Thus, at this particular movement of time it is very early to review this IPO. This is because the red herring prospectus is not filed yet and we don’t know much about the pricebands.

So first of all let the deal of 20% stake sell by Russian government executed, than and only we can discuss about the fundamentals of the company.