TCIL proposes IPO, to offload 25% stake after govt approval
By Our Corporate Bureau | 31 Mar 2003
New Delhi: The government-owned Telecommunications Consultants India (TCIL) is planning to go for an initial public offering (IPO) for offloading 25-per cent stake in the domestic market, subject to government approval.
“We wish to go for an IPO immediately,” TCIL chairman G D Gaiha told Communications and the 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 the government, which currently holds 100 per cent of its share capital.
Shourie said: “It’s a good idea. In this case, since it involves a small amount, it may not be possible to hit the overseas market. 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 the ministry to consider. Asked about the amount that the corporation is 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.”