Tikona Digital Networks is on an expansion spree. The wireless Internet broadband service provider is going to open its offices in 50 cities. It would include cities like Mumbai and Hyderabad too. The plan is to expand to these cities by the end of this year.

Tikona is currently present in 10 cities.

Tikona is going to invest Rs. 500 crore for this plan. For this money, the company has offloaded 70 per cent of its stake. This stock has been bought over by three private equity (PE) players- Goldman Sachs Investment Partners, Indivision India Partners and Oak India Investments.

As part of the financial planning, Tikona is also going to raise Rs. 1,200 crore by 2011. It is going to do this in the form of foreign direct investment (FDI), which is going to be close to 74 per cent within the company. It would be done by issuing compulsorily convertible debentures (CCDs) and also by selling equity shares to foreign players and also to the existing shareholders.

Trikona has already submitted its proposal to Foreign Investment and Promotion Board (FIPB).