Private equity firm Horse-Shoe Capital, an affiliate of Q-Investments - USA will sell its entire stake in Xcel Telecom which it incubated two years ago to American Tower, a leader in communication sites from the US, a note said.

The size of the deal was not mentioned in the note.

However, the enterprise value (inclusive of debt ) of the deal is reported to be about Rs 800 crore (Rs 8 billion).

Xcel Telecom is a leading independent tower company offering shared telecom infrastructure services to cellular operators in India through its 1700 wireless tower sites and many more under construction.

It was promoted by Horse-Shoe Capital, Mauritius, an affiliate of Q- Investment of US.

This is possibly the first instance in India where a private equity firm started a company from scratch and made a profitable exit within two years since inception, according to people associated with the development.

The transaction is expected to close in the second quarter, the press note said.

Amit Sharma, executive vice president and president Asia for American Tower, said India is one of the fastest growing telecom markets with the tower market seeing record growth .

"This acquisition is in line with our plans for the country. This deal will strengthen our base in India," he said.

Pranav Parikh, director of Xcel Telecom and managing director of Q-India Investment advisor, said the deal is beneficial to all stakeholders. He said Xcel would benefit from ATC's expertise in growing such business globally.