Shyam Telecom in the limelight

Shyam Telecom is in the limelight today and the reason not the company itself directly but its associate company, Sistema Shyam in which the Shyam group has a 24% stake.

The news, unconfirmed, is that Anil Ambani owned Reliance Communication (RCom) is  looking at the option of taking over Sistema Shyam Teleservices (SSTL) is an all-stock deal. And if and when the deal goes through, SSTL shareholders will get less than 10% stake in the merged entity.

SSTL is mainly owned by Russia's Sistema JSFC, which belongs to the Russian billionaire, Vladimir Yevtushenkov. It currently has a 57% stake. The other big shareholder is the Russian Govt which owns 17% stake.

This is being viewed as a logical buy for Rcom – it’s focus is currently all on $G LTE with 850 Mhz and Sistema in that sense is the perfect fit.

Shyam Telecom is a bright star on the bourses today, up currently 11.5% at Rs.32, its intra day high point. Volumes are up almost 5 times.