BSNL eyeing private placement, says report

MUMBAI, INDIA: India is considering a proposal for a private placement of shares in state telecoms firm BSNL due to opposition from unions for an initial public offer or stake sale to a strategic investor, the Business Standard said.

The telecommunications department is working with the disinvestment ministry to privately place 5 to 10 percent of Bharat Sanchar Nigam Ltd, the newspaper reported on Wednesday, citing an unnamed government official.

The move was also prompted by the muted response to the follow-on public offering by state-run power producer NTPC Ltd, it said.

BSNL Chairman Kuldeep Goyal could not be immediately reached for comment.

The company's proposal for an IPO has been pending for almost two years after the government approved a 10 per cent divestment.