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Kore Digital Strengthens Telecom Infrastructure with Major Acquisitions
Team Finance Saathi
06/Jan/2025
What's covered under the Article:
- Kore Digital acquires 98% of equity in Franken Telecom, Wolter Infratech, and KDL Realinfra.
- The acquisitions aim to optimize resources, improve operational efficiencies, and expand business capabilities.
- Kore Digital plans to integrate new technologies and strengthen its service offerings in telecom and infrastructure.
Kore Digital Limited, a prominent player in the telecommunication infrastructure sector, has made significant strides in expanding its business operations. On 6th January 2025, the company announced the acquisition of 98% equity stakes in three companies: Franken Telecom Private Limited, Wolter Infratech Private Limited, and KDL Realinfra Private Limited. This move is part of Kore Digital’s long-term strategy to enhance its infrastructure services, optimize its operational capabilities, and strengthen its competitive edge in the telecom sector.
Strategic Acquisitions to Accelerate Business Growth
These acquisitions reflect Kore Digital's commitment to growth, efficiency, and technological innovation. By acquiring these companies, Kore Digital aims to integrate valuable resources, enhance service offerings, and reduce operational costs. The acquisitions also provide access to specialized skills and expertise that will enable Kore Digital to expand its market presence across key sectors.
Franken Telecom Private Limited
Incorporated on July 8, 2024, Franken Telecom specializes in providing infrastructure facilities to telecom companies. Kore Digital has acquired 4,900 equity shares (98% ownership) of Franken Telecom at a face value of ₹10 per share. This acquisition will help Kore Digital improve its resource optimization, reduce costs, and enhance operational efficiencies in telecommunication infrastructure projects.
Wolter Infratech Private Limited
Established on July 9, 2024, Wolter Infratech focuses on specialized engineering and civil works. By acquiring 98% of the company, Kore Digital seeks to tap into Wolter’s engineering expertise, enabling the company to deliver high-quality and efficient infrastructure solutions. This acquisition will also enhance Kore Digital’s capabilities in engineering and technical services.
KDL Realinfra Private Limited
KDL Realinfra, incorporated on March 19, 2024, brings additional expertise in infrastructure activities. Kore Digital has acquired 9,800 equity shares (98% ownership) of KDL Realinfra at a face value of ₹10 per share. This acquisition will leverage KDL Realinfra’s industry relationships and further expand Kore Digital’s infrastructure portfolio, opening up new opportunities for future collaborations and business growth.
A Stronger Competitive Position
The combination of Franken Telecom, Wolter Infratech, and KDL Realinfra into Kore Digital’s portfolio strengthens the company’s position in the telecom infrastructure market. Ravindra Navinchandra Doshi, Managing Director of Kore Digital, commented, “These acquisitions mark a significant step forward in our growth strategy. By bringing these companies into the Kore Digital family, we aim to combine resources, access advanced technologies, and expand our expertise. These acquisitions will help us improve efficiency, reduce costs, and strengthen our service offerings.”
About Kore Digital Limited
Founded in 2009, Kore Digital Limited is a leading provider of telecommunication infrastructure and allied services. The company is licensed by the Department of Telecommunications (DoT) with an Infrastructure Provider (IP)-I License and has become a key player in delivering high-end communication solutions to corporate entities and telecom operators in Maharashtra.
Kore Digital has successfully commissioned over 600 pole-based cell sites across Mumbai and its surrounding regions, contributing to the advancement of telecommunication infrastructure. The company has also developed and maintains a 700 km optical fiber cable backbone across the region. Kore Digital's client list includes Vodafone Idea Ltd, Bharti Airtel Limited, Reliance Jio, and Tata Teleservices, reflecting its strong industry connections.
In FY24, Kore Digital recorded a total income of ₹105.08 Cr, achieving an EBITDA of ₹17.08 Cr and a Profit After Tax of ₹11.49 Cr.
Disclaimer
The forward-looking statements in this document are subject to certain risks and uncertainties, including changes in government policies, economic factors, technological risks, and others. Kore Digital does not assume responsibility for actions taken based on these statements and undertakes no obligation to update them publicly.