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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8703)	10/21/1999 1:43:00 AM
From: Mohan Marette	Respond to of 12475

VSNL may be next in line to go in for ADS offering. vsnl.net.in VSNL may opt for an ADS issue Videsh Sanchar Nigam Ltd may be the next in line to go in for an American Depository Share offering for its Internet subsidiary, VSNL Seamless Services Ltd. Leading investment bankers have advised that dilution of up to 25 per cent of its stake in its subsidiary could raise $1 billion. VSNL officials said the move was being considered but a final decision would be taken after the subsidiary was valued and became functional in about three months. Considering the response to Satyam Infoway's ADS float, VSNL Seamless, which would be at least five times bigger in terms of account base, could easily raise a larger amount, the officials said. "A separate subsidiary for Internet will reflect the strength of this business in the stock value, currently locked by virtue of being a small part of VSNL's business. The true worth of the business would only be realised once it is listed as a separate entity," one VSNL official said. The investment bankers, too, have pointed out that the international sell off in the Net subsidiary would be in line with the government's aim of raising large amounts through a disinvestment. "There is a tremendous appetite for Indian Internet stocks and this has been proved by the huge success of Satyam Infoway. VSNL is a giant and hence the sky is the limit for its Internet subsidiary," an executive of one of the investment banks involved in the talks said. The VSNL stock is currently ruling at Rs 1,700, hitting the upper end of the circuit filter almost every day on the Bombay Stock Exchange. Source : MI Oct 21, 1999 VSNL.B 1,625.00 -75.00 -4.41% VSNL.N 1,600.00 -60.05 -3.62%