He told reporters that the sale would bring the RPG group stake in the mobile telephony company to the original 51 per cent level. In an equity rejig earlier, the RPG group has lapped up a 17 per cent stake in the company from foreign partners taking its total shareholding to 68 per cent, he added. However, the RPG group would not exit from the venture at any point of time and would continue to be the majority shareholder, Mr Mehta said. He said that RPG had roped in Mumbai-based investment banker, Rabo Bank, to see the deal through. The entire exercise was expected to be over in two months' time, he added. The proceeds from the sale would be utilised to part-fund the ongoing expansion programme of the mobile telephony company, he added.

He said the company would be investing close to Rs 40 crore to update technology and provide value-added services to the customers in two phases. In the first phase ending June next, the company would pump in Rs 25 crore to enhance its switch capacity to 1.25 lakh from the current level of 75,000, he said. Phase II would see the company launching the General Packet Radio Service (GPRS) to provide WAP facility to its subscribers. The company has earmarked Rs 15 crore for providing this service, which will be completed by December.