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TCIL proposes IPO; plans to offload 25 per cent stake
New Delhi, Mar 31: State-owned Telecommunications Consultants India Ltd is planning to go for an initial public offering for offloading 25 per cent stake in domestic market, subject to government nod.
New Delhi, Mar 31: State-owned Telecommunications Consultants India Ltd is planning to go for an initial public offering for offloading 25 per cent stake in domestic market, subject to government nod.
“We wish to go for an IPO, for offloading 25 per cent stake in the Indian market immediately,” G D Gaiha, chairman of TCIL, told communications and it minister Arun Shourie, while presenting him an interim dividend cheque of Rs 18 crore for the year 2002-03.
TCIL's proposal would require clearance from government, which currently holds 100 per cent of its share capital. Commenting on the proposal by TCIL, Shourie said it is a good idea. In this case since it involves a small amount, it may not be possible to hit the overseas market, but in strong Indian companies we should have issues abroad also, so that foreign investors get to know that India is an important investment destination. That should be one of our objectives.
Gaiha said TCIL would soon take the matter to its board and subsequently draw up a formal proposal for ministry to consider.
Asked about the amount that the corporation was planning to mop up from the proposed IPO, Gaiha said it is not yet clear, but with our strength we should be able to get a good value.
The proposed offering could take four to six months to hit the market, he said.
Bureau Report
TCIL's proposal would require clearance from government, which currently holds 100 per cent of its share capital. Commenting on the proposal by TCIL, Shourie said it is a good idea. In this case since it involves a small amount, it may not be possible to hit the overseas market, but in strong Indian companies we should have issues abroad also, so that foreign investors get to know that India is an important investment destination. That should be one of our objectives.
Gaiha said TCIL would soon take the matter to its board and subsequently draw up a formal proposal for ministry to consider.
Asked about the amount that the corporation was planning to mop up from the proposed IPO, Gaiha said it is not yet clear, but with our strength we should be able to get a good value.
The proposed offering could take four to six months to hit the market, he said.
Bureau Report