Vindhya Telelinks Limited, a prominent player in the telecommunications industry, has completed the acquisition of 100% stake in Birla Visabeira Private Limited (BVPL), making it a wholly-owned subsidiary. This acquisition, finalized on March 27, 2025, consolidates Vindhya Telelinks' position in the telecom passive infrastructure sector, enhancing its operational efficiency and market presence.

The company has acquired a total of 54,00,000 fully paid-up equity shares of BVPL, each with a face value of Rs. 10/-. Of this, 44,10,000 shares were acquired from Visabeira Global, SGPS, SA, representing a 49% shareholding, and 9,90,000 shares were acquired from Birla Cable Limited, representing 11% shareholding. This brings Vindhya Telelinks' shareholding in BVPL to 90,00,000 shares, thereby securing 100% ownership of the company.

This acquisition is a strategic move to consolidate IP-1 assets (Infrastructure Provider License) of both companies. BVPL's capabilities in the engineering, procurement, and construction of optical fibre networks will complement Vindhya Telelinks' existing infrastructure, allowing for greater scalability and flexibility in expanding the telecom network in India. The synergy between the two companies is expected to unlock significant market opportunities, particularly in the domain of leased fibre networks and operation & maintenance services.

The deal comes as a result of a Share Purchase Agreement (SPA) executed on March 27, 2025, and the consideration for the acquisition was paid in cash through electronic transfer. The cost of acquisition for the shares acquired stands at Rs. 1,67,40,000, with the price per share being Rs. 3.10. This acquisition will allow Vindhya Telelinks to leverage BVPL's existing IP-1 license, which enables the establishment and maintenance of passive telecom infrastructure such as dark fibre, duct space, and towers, all of which can be leased to telecom service providers.

The acquisition also marks the end of the Joint Venture Agreement between Vindhya Telelinks and Visabeira Global dated June 3, 2015, as the JV ceased to exist from March 27, 2025. This marks a significant shift in the ownership structure of BVPL, as Vindhya Telelinks assumes full control of the company.

Overview of Birla Visabeira Private Limited

Birla Visabeira Private Limited (BVPL) was established on September 15, 2015, under the provisions of the Companies Act, 2013. The company's core business is in the telecommunications sector, where it has a significant role in building and maintaining optical fibre networks, crucial for high-speed data transmission. BVPL also holds an IP-1 license, which permits it to offer infrastructure services to telecom operators, further enhancing the business' marketability and operational reach.

For the fiscal year 2023-24, BVPL reported a turnover of Rs. 1845.31 Lakhs, demonstrating its solid financial performance. Over the past few years, the company has seen fluctuating revenues, with Rs. 946.47 Lakhs in FY 2022-23 and Rs. 1797.46 Lakhs in FY 2021-22. Despite these fluctuations, the company's core business remains crucial to the telecom infrastructure market, providing essential services to telecom operators in India.

The Strategic Significance of the Acquisition

The acquisition of BVPL enables Vindhya Telelinks to further expand its operations in the telecom infrastructure sector, specifically in the areas of dark fibre leasing, duct space leasing, and tower services. This will provide Vindhya Telelinks with a comprehensive network that can be leveraged for scalable business growth and improved service offerings.

Additionally, this acquisition strengthens Vindhya Telelinks' position in the telecom passive infrastructure market, aligning with its long-term goal of becoming a leading player in this rapidly growing sector. By integrating BVPL’s assets with its own, Vindhya Telelinks is poised to take advantage of emerging opportunities in telecom network expansion and IP-1 services, ultimately enhancing its competitive edge in the market.

Regulatory and Financial Details

The acquisition, which has been executed in line with the SEBI Listing Regulations, is not subject to any governmental or regulatory approvals, as no specific regulatory clearance was required for this transaction. The transaction has been carried out with the full transparency of market rules and regulations, ensuring compliance with all legal requirements.

With the successful completion of this acquisition, Vindhya Telelinks is now fully positioned to integrate BVPL’s assets and further enhance its market footprint. The acquisition has been structured in a way that ensures arm's length transactions, and the pricing of the acquisition has been validated by an Independent Chartered Accountant and SEBI-registered Merchant Banker, guaranteeing that the transaction complies with the highest standards of market fairness.

Through this strategic move, Vindhya Telelinks not only gains full control of BVPL’s substantial infrastructure but also positions itself to lead in the telecom infrastructure domain in India, capitalizing on the growing demand for high-speed data transmission and telecom services.

In conclusion, this acquisition is expected to bring substantial benefits to Vindhya Telelinks, strengthening its position in the market and unlocking value through enhanced operational synergies. The complete integration of BVPL’s assets will allow Vindhya Telelinks to stay ahead of market trends and deliver innovative telecom solutions to its clients.

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