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In March last year, the Department of Disinvestment (DoD) had decided to divest 10 per cent in TCIL. DoD had also asked the telecom consultancy and engineering company to take necessary steps for the IPO after consulting the Department of Telecommunications (DoT).
TCIL was also given the option of taking a call on fresh equity infusion. In June 2009, the board of directors of TCIL had approved a proposal to issue 4.32 million equity shares of Rs 10 each through an IPO.
TCIL’s consolidated net worth stood at Rs 1,331 crore as on September 30, 2012, while its stand-alone net worth at the time was Rs 4,28 crore. The company had paid a cumulative dividend of Rs 118 crore to the government.
Meanwhile, TCIL has increased its authorised capital to Rs 60 crore from Rs 30 crore for the proposed IPO.
The company was established in 1978 under DoT as a wholly-owned government company to provide Indian telecom expertise to friendly developing countries. TCIL has so far extended its reach to 58 countries.
Earlier, the government had said it would mop up about Rs 300-400 crore by offloading a 25 per cent stake in TCIL through a public listing.
Meanwhile, the government has been reportedly considering selling TCIL’s 30 per cent holding in Bharti Hexacom Ltd, a joint venture with Bharti Televentures Ltd, which operates cellular telephone services in the Rajasthan circle. TCIL formed the JV in 1995 and has invested Rs 106 crore in the venture.
Bharti Hexacom has more than two million subscribers and over 30 per cent market share in Rajasthan telecom zone.
