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Tikona Digital secures $45 million led by IFC

Internet service provider Tikona Digital has raised $45 million investment from the International Finance Corporation (IFC) and existing investors. Of this, IFC has invested $25 million into Tikona while the remaining $20 million is from existing investors like Goldman Sachs, Oak Investment Partners, Everstone Capital Advisors and L&T Infrastructure Finance Co Ltd. The company plans to use this investment raised to expand its broadband network in existing and new cities, particularly in priority states of Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh. It's worth noting that Tikona Digital had received FIPB approval to raise Rs 250 crore investment in September this year. The company had then said that it plans to use this investment to increase the foreign equity stake in the company up to 73.76% by issuing compulsorily convertible debentures (CCDs) and/or equity shares to International Finance Corporation and other existing foreign investors.  Tikona had also received FIPB nod to raise Rs 248 crore investment in January this year, by issuing compulsorily convertible debentures (CCDs) and equity shares to the existing NRI investors to increase the foreign equity stake in the company to 72.58%. Tikona offers wireless broadband services to home consumers and small enterprises (through the acquisition of HCL Infinet) and is currently operational operational in 25 Indian cities after winding down services in 13 cities in December 2012. Tikona 4G license: Apart from this, Tikona also owns 20 MHz of 4G spectrum in five telecom circles of Gujarat, UP-East, UP-West, Rajasthan and Himachal Pradesh, for which it had paid Rs 1,058 crore in the 2010 BWA auction. In December 2012, Tikona CMO Heramb Ranade had mentioned that they plan to launch 4G services…

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