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BSNL mulls public issue to raise $10 b
State-owned telecom firm Bharat Sanchar Nigam Ltd (BSNL) is considering an initial public offering (IPO) to dilute up to 10 per cent of its equity to fund expansion plans.
The BSNL Employees Union is, however, opposing the move on the grounds that the company did not need private money now to fund its expansion plans.
"The proposal to disinvest 10 per cent of BSNL is completely unwarranted and will be strongly opposed by the more than 3 lakh work force of BSNL. If the Government goes ahead with its plans then we will be compelled to resort to agitattion including going on an indefinite strike," said Mr V.A.N. Namboodiri, Convenor, Joint Forum of BSNL Unions.
"There is no dearth of money with BSNL for its development and expansion. Almost Rs 40,000 crore is available with BSNL, which can be utilised for the above purpose. In fact, it is not lack of finance, but lack of GSM lines and other telecom infrastructure, which is hampering the growth and expansion of BSNL," said Mr Namboodiri.
If BSNL goes ahead with its IPO plans, then it will easily be the biggest in the telecom sector. Bharti Airtel had offloaded 10 per cent stake in 2002 to raise Rs 833 crore, and in 2007, Idea Cellular had raised around Rs 2,400 crore through an IPO.
