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VSNL shares are double the current price
Videsh Sanchar Nigam Ltd (VSNL) has clarified that the value of their shares are at least twice the price and what is reflected on Friday is a grossly undervalued amount.
Videsh Sanchar Nigam Ltd (VSNL) has clarified that the value of their shares are at least twice the price and what is reflected on Friday is a grossly undervalued amount.
Its shares closed at Rs 292.60 on Monday at the Bombay Stock Exchange, down nearly 30 per cent since February 5, when they hit a high for the year at Rs 415. This is mainly due to the fact that share holders of VSNL, which is also the country's largest Internet Service Provider, were concerned over the impending end to its monopoly international phone service status in April 2002. However VSNL Chief Shailendra Gupta said that Rs 600-700 should be the fair value but Rs 500 should be rock bottom. VSNL whose 90 per cent revenues come from its overseas telephony business have been hit by falling call charges and drop in international settlement rates. Mr Gupta added that VSNL has linkages to 237 countries, has more than 30 earth stations and more than 12 gateway switches and has ownership in nearly four submarine cables. ''If anyone new comes into the business, he cannot achieve all this instantaneously,'' Gupta said.
Bureau Report
Its shares closed at Rs 292.60 on Monday at the Bombay Stock Exchange, down nearly 30 per cent since February 5, when they hit a high for the year at Rs 415. This is mainly due to the fact that share holders of VSNL, which is also the country's largest Internet Service Provider, were concerned over the impending end to its monopoly international phone service status in April 2002. However VSNL Chief Shailendra Gupta said that Rs 600-700 should be the fair value but Rs 500 should be rock bottom. VSNL whose 90 per cent revenues come from its overseas telephony business have been hit by falling call charges and drop in international settlement rates. Mr Gupta added that VSNL has linkages to 237 countries, has more than 30 earth stations and more than 12 gateway switches and has ownership in nearly four submarine cables. ''If anyone new comes into the business, he cannot achieve all this instantaneously,'' Gupta said.
Bureau Report