Russian Telecom operator Sistema has acquired 10 percent stake in Indian telecom operator Shyam Telelink for $11.4 million. Shyam Telelink, a part of the public listed Shyam Telecom group, operates in Rajasthan under the brand name Rainbow and currently has 257,108 subscribers (157,431 Wireline, 99,677). The company has applied for a national level Unified Services Access licence for operating in 21 circles. It’s among the smallest telecom operators in India, in terms of number of subscribers. The company also controls 100 percent of Shyam Internet limited, an Internet Service Provider.

Sistema intends to increase it’s stake to 51 percent after receiving approval from the Foreign Exchange Promotion Board (FIPB), upon which the overall value of the deal may reach $58.1 million. Shyam Telelink is allowed to divest a maximum of 74 percent under Foreign Direct Investment rules. Sistema is a large consumer services company operating in Russia and the CIS, across telecom, technology, insurance, banking, real estate, retail and media, and is listed on the London Stock Exchange, Russian Trading System and the Moscow Stock Exchange. [via release]