Posts Tagged ‘Bharat Sanchar Nigam Ltd’

Bharat Sanchar Nigam Ltd (BSNL)’s Global Reach

Bharat-Sanchar-Nigam-Ltd-bsnl-deepika

When it comes to making money out of its Indian operations, Bharat Sanchar Nigam Ltd (BSNL) might be in trouble, but that”s not preventing the company from dreaming big on its global foray. However, the national telecom operator is ready to step out of India with a Rs 37,000 crore war chest the company is looking aggressively to make some foreign acquisitions.

In addition, BSNL has already bid for Tigo in Sri Lanka and the next frontier is Africa while the company is open to acquisition of companies as well as new licenses and is close to an acquisition in Kenya.

On the other hand, BSNL has also been approached to buy stake in Zain telecom but even as the government-owned firm looks at buying companies abroad, it is reported to be in talks for selling stake to a foreign partner. However, it is also looking to tie up with international players like NTT Do Co Mo and British Telecom for enterprise services.

Indian Govt. disinvestment plans to kick off soon !

Indian Govt. disinvestment plans to kick off soon !

Indian Power Firm NHPC Ltd will kick off a $1.25 billion IPO next week in the first share sale by a state company.

Since the congress party’s unexpectedly strong re-election in May spurred investors hopes for pro market reforms. 🙂

🙂

Despite opposition from labour groups and leftist parties, the government is forecast by some watchers to offload roughly $5 billion a year in state shares.


This could hearten a bond market worried about fiscal responsibility, but do little to address a yawning deficit and $90 billion borrowing plan.

Investors are expected to lap up shares in government firms, given :

a) attractive pricing,

b) a record of outperformance relative to IPOs by private firms,

c) and a roaring stock market run since March. 🙂

NHPC opens its IPO on August 7 in what would be the first for a state firm in India since Feb. 2008.

Oil India is expected to follow with a $500 to $600 million issue in September.

🙂

Also in the works could be a multi-billion-dollar IPO by telecoms firm Bharat Sanchar Nigam Ltd.

Secondary offerings by power equipment maker Bharat Heavy Electricals, Rural Electrification Corp, trading firm MMTC Ltd and mining firm NMDC Ltd. are also in queue.


🙂

The pipeline of equity from state firms promises to top the record $6 billion raised from government asset sales between 1999 and 2004 when the pro-business Bharatya Janata Party (BJP) was in power.

During that period, shares were sold in firms such as Oil and Natural Gas Corp and Maruti Suzuki.

Since then, the government raised just $1.4 billion as allies of the ruling coalition and labour unions thwarted plans for stake sales.

😦

Indian state companies that listed between 2004 and 2009 have shown share price gains on average of 140 percent compared with just 3.5 percent for their private sector peers, according to a study by SMC Capitals, a deal tracking firm.