Blog Post

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

3 Responses to “BSNL Plans To Divest 10 Percent Inorder to Expand; Biggest Ever Indian IPO”

  1. 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.