MTNL to go for NYSE listing within 2 months
mtnl.net.in
Mahanagar Telephone Nigam Ltd will make its debut on the NYSE in the next two months, the company's chairman and managing director, S Rajagopalan said. "We have decided not to wait until the GDR which has been postponed indefinitely," he said. SBI Caps has been mandated to oversee the process.
At an extra-ordinary general meeting yesterday, MTNL shareholders also approved resolution amending the Memorandum of Understanding and Articles of Association, thus enabling the company to assume its 'navaratna' powers. The navaratna status had been accorded to the company in October 1997.
Rajagopalan said that a broad business strategy that reflected the navaratna powers would be taken up before the company's board on December 3. The strategy will revolve around 'joint-ventures, diversification of business and better management of surpluses'. Among the initiatives that will come up is the creation of Millennium Telecom, MTNL's subsidiary for Internet services, which will come into being on January 1, 2000.
The company is also gearing up for a big push in Internet services and a tariff revision is in the offering, Rajagopalan said. The subscriber base will be increased from 20,000 to 60,000 by December, and connections will be available through CD-ROMs.
MTNL is looking at offering a diversified range of tariffs, such as cheaper nighttime rates. The company is also looking at offering digital subscriber line (DSL)-based connections, which will offer faster leased line-like access over existing copper lines.
Under its navaratna power, MTNL board will be empowered to approve investments in capital expansion, joint ventures, strategic alliances, and wholly owned subsidiaries in India and abroad.
Rajagopalan said that the company was serious about utilizing all its navaratna powers. MTNL is, therefore, looking into the possibility of investing or acquiring stakes in equipment vendors, including cable-manufacturing units. The company is looking at small to mid-size companies with a turnover of around Rs 10-50 crore. Investments are also likely in other telecom service providers, through Rajagopalan did not divulge any specifics.
The shareholders also approved an amendment to expand and diversify activities beyond the boundaries of Delhi and Mumbai, as well as s set up offices/ ventures overseas.
Source : MI
Nov 20, 1999
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