Mega IPO in the offing: BSNL will be up for grabs

OFFER IRRESISTIBLE: Telecom Minister Andimuthu Raja speaks to the press about the mega plans

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Keywords: IPO, Indian Telecommunication

It is the first big ticket disinvestment by the government. Get ready for a mega IPO, possibly in this financial year.

It is Bharat Sanchar Nigam Limited (BSNL) this time.

India hopes to raise Rupees 40,000 crores in the country's largest-ever IPO through a share sale in BSNL.

But the government officials, on Thursday, said that it would take a decision only after talks with trade unions.

In January, this year, the government had expressed its plans to list BSNL but the work soon took a backseat after the Left parties that propped the UPA government opposed the move.

The government seems to have put forth the plans only after the Left deserted it on another unrelated issue.

Five to ten per cent of the stake will be up for grabs for the public.

So now, BSNL's 304,000 employees will get to buy 500 shares each at Rupees ten a piece and the IPO would be in a between Rupees 300-400 per share.

But it is not through, yet. Another round of talks will be held with trade unions, which have been resisting the stake sale.

(With inputs from Reuters)