Telecom Consultant India Ltd has decided not to pick up 67.5 per cent stake in Rajasthan cellular operator Hexacom, thereby setting the stage for Bharti to acquire majority equity from Shyam Group.

TCIL, which had the right of first refusal, has decided against picking up the additional equity and the company's views have been communicated to the government.

"While TCIL has refused to pick up 67.5 per cent stake, it currently has 30 per cent equity in Hexacom, which will ensure that TCIL independently retains advantage of being pre-qualified for seeking franchise in cellular services in developing countries," sources told PTI in New Delhi.

Earlier this month, Bharti had announced it would acquire majority stake in Hexacom for a cash-cum-share swap deal of Rs 430 crore (Rs 4,300 million) as a part of its initiative to expand.

For the acquisition of 67.5 per cent stake in Hexacom, the Sunil Mittal-promoted group had signed a deal with Shyam Group for a consideration of Rs 430 crore which included the premium for majority shareholding and a greater say on the board of directors.

The transaction is principally a share-swap deal, wherein shares and optimally convertible redeemable debentures of Bharti Televentures are proposed to be issued to Shyam Group as swap for their holding in Hexacom.

The deal is proposed to be funded by way of issue of equity shares of Bharti Televentures for Rs 75 crore (Rs 750 million), issue of OCRD for Rs 300 crore (Rs 3,000 million) and the balance in cash.

The acquisition would give Bharti a presence in Rajasthan, helping the company expand its network all over India.

Bharti had earlier said it intended to consolidate its stake in Hexacom as and when an appropriate opportunity came its way.