BSNL mulls public issue to raise $10 b

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New Delhi, Jan. 14

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 value of the company is estimated at $100 billion, according to company officials.

The Communication and IT Minister, Mr A. Raja, said at a press conference, "We will look into the option of going for an IPO. The Department of Telecom will discuss the issue and take a decision."

He, however, refused to give any time frame for the proposed IPO. BSNL's revenue for 2006-07 stood at Rs 39,750 crore, with net profit of Rs 7,805 crore.

The PSU has an immediate investment plan of Rs 15,000 crore to expand its GSM mobile network across the nation. BSNL officials said that the IPO could fetch anywhere between Rs 20,000 crore and Rs 40,000 crore depending on the market conditions. They said that the fund would enable BSNL to roll out network into the remote areas of the country. The company has 35 million fixed line subscribers and over 30 million mobile users.

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