Merchant bankers for BSNL IPO to be appointed

NEW DELHI: Merchant bankers for the proposed 10 bn dollar public offer of state-run telecom giant BSNL will be appointed after talking to all stakeholders, including the employee union which is opposing the IPO, a senior company official said on Tuesday.

"We will be discussing with the employees, then we will work out something. Valuation is the job of the merchant bankers and the appointment of bankers will be done after talking to all the stakeholders on the IPO," BSNL Charmian- cum-Managing Director Kuldeep Goyal said here.

He declined to comment on the valuation saying that is merchant bankers' job as and when they are appointed.

Goyal said he would not guess about the valuation and leave it to the merchant bankers.

BSNL would give the go-ahead signal after talking it out with the union, he said.

Sources said this could delay the initial ground work for the IPO, but there is no other alternative.

But Goyal is positive about a solution to IPO which is opposed by the union. "There are already some positive response. they have said they have an open mind on the issue.. the unions are discussing with the employees," Goyal said.

Asked if the PSU fails to persuade the union on IPO and decides to go for IPO, he said "when we come to the bridge, we will cross it.. let us first come to that situation."

BSNL, the country's No 1 telecom firm, is proposing to divest 10 per cent stake through a public offer to raise 10 bn dollar, this unofficially puts the valuation of the company at 100 bn dollar of the company.