“We will look into it... The Department of Telecom (DoT) will discuss the issue and take a decision,” Telecom Minister A Raja told reporters here. He, however, refused to give any time schedule for coming out with an Initial Public Offer (IPO).

BSNL’s revenue stood at Rs 39,750 crore in 2006-07, with net profit of Rs 7,805 crore. The PSU has an immediate investment plan of Rs 15,000 crore to expand its GSM mobile network across the nation. Going by the valuation of the company, 10 per cent dilution may give the PSU up to Rs 20,000 crore, according to BSNL Director (Finance) S D Saxena.

Internal accruals

Some officials, however, said that depending on the market conditions at the time of initial public offer, the collection from the initial public offer could even double to Rs 40,000 crore.

Asked how much funds were required for expanding the network, Mr Saxena said the current round of expansion would be met through internal accruals but an IPO could help increase the network through length and breadth of the country, especially in the rural areas where private operators have shied away from setting up operations. Mr Saxena said the whole exercise of IPO is likely to begin in the next 2-3 months and would be completed within a year.

He, however, said the government has to decide on the public issue and everything would depend on its policy.
The government had asked for the company’s opinion on IPO and it has forwarded its reply, he added. Asked whether merchant bankers have been appointed for this, he said: “Not yet.” Meanwhile, Bharat Sanchar Nigam Ltd have strongly opposed the proposed disinvestment of the telecom giant, terming it “completely unwarranted.’’