Viom Networks, the Indian towers business which is majority controlled by Tata Teleservices, is looking for fresh funds with an initial public offering as its preferred option, according to the Financial Times.

The company, which wants the funds to build new towers and expand capacity in anticipation of future 4G demand, has been valued at between INR220 billion ($3.6 billion) and INR270 billion.

Viom, which has 41,000 towers, has appointed Citigroup and Credit Suisse as advisers.

“The preference is the listing method but basically whichever is best for us,” commented Sunil Kanoria, vice-chairman and managing director of Viom.

“We see in the next two to three years good growth coming back into the sector, and so we need capital to grow further,” he added.

“The size of the transaction which we have is fairly large,” Kanoria also said. “We feel there are a lot of investor groups in many markets, so if we can go closer to them that may be a better option.”

Viom would not be the first of the big Indian towers businesses to dip into the financial markets. Bharti Infratel listed its shares domestically at the end of 2012, raising INR42 billion. At the time it had 34,000 towers in its portfolio.

The Indian government has introduced a two-year window for Indian companies to list abroad without listing domestically, so opening the door to fresh sources of capital.

Tata Teleservices holds a 54 per cent stake in Viom, while Srei Infrastructure has an 18 per cent stake, and the remaining 28 per cent stake is held by four private equity investors – Macquarie SBI Infrastructure, GIC Investments Pte Ltd Singapore, IDFC Private Equity and Funderburk Mauritius Ltd (Oman Investment Fund).