While it is not certain as to who might pick up HFCL's stake, there is intense speculation in the market that the telecom investment arm of the Hindujas, IndusInd Telecom Network Ltd (ITNL), can buy out HFCL.

HFCL is one of the co-promoters of Fascel along with Shinawatra Computers and Communications of Thailand and Bezeq Globe of Israel. While HFCL initially held 51 per cent of the venture's equity, Shinawatra and Bezeq still maintain their initial equity holding of 33 per cent and 16 per cent, respectively. However, HFCL divested its stakein the cellular venture to the permissible level of 10 per cent by selling 30 per cent to ITNL and 11 per cent to Kotak Mahindra. Besides HFCL, even the Hindujas have divested their holding in the company by selling a 45 per cent stake in ITNL to Sumotomo of Japan.

HFCL is also reducing its stake in its basic services venture, which is a joint venture with Shinawatra (16 per cent) and Bezeq (33 per cent) from 51 per cent to about 21 per cent. It is reported that BSES Ltd is picking up the 30 per cent stake.

The company has already announced its plans to reduce its stake in its paging company, Microwave Communications, which is a 60:40 joint venture between HFCL and Shinawatra. The company is expected to adopt the holding company model for reducing its stake in Microwave.

Fascel has already drawn up plans to invest Rs 1,033 crore in the project till 1999 and has till now raised and invested Rs 350 crore by way of equity in the venture. It has also committed itself to pay a licence fee of Rs 1,798 croreover a 10-year period. Fascel recently raised Rs 620 crore by way of debt to fund its investment plans.