Israeli company Koor Industries has showed interest in acquiring a minority stake in CDMA network operator Tata Teleservices (TTML).

Koor has sent a non-binding letter of intent (LoI) expressing its interest to invest USD 577 million or about Rs 23 billion in TTML.

Tata Teleservices (TTML) is planning to raise more than $1 billion by selling around 30% state to private equity (PE) and strategic investors.

The said fund raising plan will be one of the biggest telecom agreements in recent times.

The company has also nominated Lazard Capital for stake sale and believed to be in discussions with prospective buyers, including Israel-based Bezeq.

Koor Industries is a holding company having interests in agrochemicals, defence electronics, venture capital and telecommunication. It holds 61% stake in Telrad Networks (a global telecom equipment and services organisation) and 21% holding in ECtel (a solutions provider).

TTSL plans to sell 15-30% to financial and strategic investors to raise money for its expansion in both CDMA and the soon-to-be-launched GSM services. The stake sale can go up to 25-30%.

Shares of the TTML gained Rs 4.3, or 14.58%, to end at Rs 33.8. The total volume of shares traded was 18,117,148 at the BSE. (Thursday)