Videsh Sanchar Nigam Limited (VSNL) will be issuing 1 m shares in the domestic markets as part of the Government's disinvestment program. The issue is to be priced at 10 - 15% discount to market price.
VSNL is India's monopoly provider of international telephony services. It also provides telex, telegraph services, value added services such as leased lines, e-mail, internet and video conferencing. Government of India holds 65% of the company.
VSNL has decided to price the issue at approximately Rs 700 per share. The issue, targeted at retail investors, aims to raise Rs 700 m for the Government. At present the government does not have any plans to let its stake fall below 51%. .
While the disinvestment by the government will not help the company directly, but the indirect benefit for the company would be the higher liquidity in the stock which will benefit investors.
Analysts at leading broking houses were concerned about the profitability of the company when its monopoly in international telephony services ends in Year 2002. However some analysts and fund managers are taking a more positive view on the company in view of the higher revenues from value added services like internet.
More Views on News
Sorry! There are no related views on news for this company/sector.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407