State-owned telco BSNL on Monday said it plans to launch India’s biggest IPO to raise over US$10 billion. “The company is valued at well over US$100 billion. We are looking at offloading up to 10% stake, subject to government approval,” BSNL finance director S K Saxena told reporters. When asked about the development, telecom minister A Raja said: “The government is considering it (an IPO). The department of telecom (DoT) will discuss the issue and take a final decision soon”.
BSNL has an equity base of Rs 5,000 crore, which translates to a shareholding structure of 500 crore shares at a face value of Rs 10 each. BSNL executives said this would not be a disinvestment, but a dilution of stake by the government through the issue of fresh shares. This is because the company’s authorised capital is less than that of its subscribed capital, they said. (US$ 1 = INR 40)
Read the full story in ‘The Economic Times’ here.