India’s Tata Communications is looking to raise a war chest of some INR30 billion (US$600 million) to fund possible overseas acquisitions and WiMAX spectrum purchases, reports India’s Economic Times. The company has reportedly approached the Indian government – a 26 percent shareholder in the firm – regarding a new rights issue to raise INR10 billion, plus taking on a further INR20 billion in debt. According to company sources, Tata is planning to use part of the funds for a new submarine cable project, but is also looking at possible acquisitions in the managed services space in the US and the UK. The company has also reportedly written to both its parent group, Tata Sons Ltd, and some select financial institutions regarding further financing.

On the domestic front, the company is thought to need funds in order to acquire spectrum suitable for WiMAX in India’s forthcoming ‘Broadband Wireless Access’ (BWA) auction, which is scheduled to begin later this month alongside India’s 3G spectrum auction. The reserve price for the WiMAX spectrum is currently set at INR10 billion, though the Indian government is reportedly considering doubling the base price for both 3G and BWA spectrum.