Raja reads union's mind on BSNL IPO, 'No' written all over

Raja reads union's mind on BSNL IPO, 'No' written all over

New Delhi, Aug 7 (PTI) The government today sought BSNL workers' consent for diluting 10 per cent stake through an IPO to fund expansion plans, but the employees union rejected the plan as also offers for ESOPs.
"This is the first time I am talking to the BSNL union on the issue of listing after its board took a decision on the same last week. We have explained to the union on how the IPO will benefit the company," Communications Minister A Raja said after meeting the workers.

The employees were also offered stock options during the talks, but the proposal did not find favour with the union.

"We are not interested in the ESOP package given by the Board. We don't want any IPO in BSNL. We are not convinced with their argument that the IPO is beneficial for BSNL's growth," BSNL Employees' Union General Secretary V N Namboodiri told reporters after meeting Raja.

BSNL has been rooting for a public listing to raise money to fund expansion plans. The company, which has 70 million subscribers, is valued at 100 billion dollars and a 10 per cent dilution of stake could fetch 10 billion dollars (nearly Rs 40,000 crore).

BSNL Chairman Kuldeep Goyal said there is no timeframe as to when the IPO will happen. "There is no immediate need for it but we are preparing the ground work... (and claimed) we are seeing some positive reaction from the union on the issue." PTI