The government is all set to mop up Rs 62.10 crore through a public issue by divesting 6.9 lakh shares held by it in Videsh Sanchar Nigam Ltd (VSNL).
The shares, having face value of Rs 10 each, will be offered at a price of Rs 900 per share.
The issue is slated to hit the market sometime in October. The lead managers to the offer are SBI Capital Market Ltd and Kotak Mahindra Capital Com-pany.
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The government was committed to disinvest its shares in VSNL to the Indian public at 10 per cent less than the GDR price of Rs 1000
In addition to the lead managers, the government has informally appointed Videsh Sanchar Nigam Ltdto oversee the issue of divestment.
VSNL officials are, however, quick to point out that they are not the offerors.
Investors will be allowed to invest in a minimum of 10 shares so as to allow small investors to gain from this issue.
The government is keen that small retail investors should gain from the exercise and ensure that the shares are not cornered by financial institutions and other big time investors, says sources.
After the divestment, governments stake in Videsh Sanchar Nigam Ltd will come down to 62.24 per cent.
The divestment is in step with the governments policy to grant enhanced autonomy to the `navratnas, the nine selected public sector enterprises.
While around 15 per cent of the total divestment is earmarked for the domestic market, the remaining 85 per cent was divested at the time of the GDR issue.
Earlier, in 1992, Videsh Sanchar Nigam Ltd divested 1.2 crore shares to financial institutions, Indian banks and mutual funds.
This was followed by the GDR issue in 1997 that concluded in March-April 1997 which enh-anced the companys paid-up capital from Rs 80 crore to Rs 95 crore.