BSNL to appoint merchant bankers only after unions agree on IPO

[K.Karthik Raja]

BSNL to appoint merchant bankers only after unions agree on IPO
Tuesday, Aug 12

NEW DELHI - Bharat Sanchar Nigam Ltd Chairman and Managing
Director Kuldeep Goyal today said that the company will appoint
merchant bankers only after its unions agree on its proposed initial
public offering.
As part of its efforts to gather support from the unions for the
IPO, thecompany has offered each of its 300,000-strong workforce 500
shares at a face value of 10 rupees.
Goyal parried question on whether the company would sweeten the
offer.The BSNL Employees Union insists that the proposed IPO is a
smokescreen.
"The IPO is just an excuse to make the company private," V.A.N.
Namboodiri, general secretary of BSNL Employees Union had said
Thursday. The paid-up equity capital of the company is 50 bln rupees.
The company has already placed an order with Sweden's Ericsson to
supply 5 mln 3G lines worth 30 bln rupees.
"The equipment is for circles in north and east," Goyal said.
He also said that the company will launch mobile services based on
code division multiple access technology by the end of March.
.
K.Karthik Raja
Research Analyst.