BSNL Plans To Divest 10 Percent Inorder to Expand; Biggest Ever Indian IPO
[by Cerius Shah] Good old guv’nor BSNL is now getting into the valuation game. Its plan to divest 10%, which at a valuation of $100 billion (BSNL revenues for 06-07 stood at Rs 39,750 crore), works out to $10 billion (Rs 40,000 crore). Apparently the DoT is mulling over the matter. BSNL seeks Rs 15,000 crores to expand its network especially in rural places.
ET: BSNL is India
Rafat & Nikhil
..you probably mean $10Bil (which is about Rs 40k crores) and not $10Mil …. :)
cheers
S
This is the right thing to do given the excess liquidity in the system driving share prices to unprecedented levels. At the same time we have a great need for expansion of services in vast hinterlands which have not interested other operators despite USO sops.
BSNL has laready announced spending $500 million in CDMA networks and an unspecified amount in WiMAX networks. If VSNL alone can plan a $ 500 million investment in WiMAX, ( see http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/VSNLs_WiMAX_broadband_services_by_Jan/articleshow/2615740.cms)
the scope for BSNL can easliy exceed $4-5 billion in this service alone.
BSNL needs to aim at being the XOHM for India, and replicate a feat being unveiled in the United States.
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