VSNL public issue oversubscribed

The domestic issue of Videsh Sanchar Nigam

Ltd. (VSNL) has already been oversubscribed by 20 per cent. This is the

first ever divestment by the government through the public offer route.

VSNL has made a public offer sale of million shares at a price of Rs 750

per share.

In all other divestments, the government had adopted the strategy of

offloading its stake in the overseas markets through the global

depositories route or had offered shares to domestic financial

institutions through the private placement route. The company has received

till date about 40000 applications amounting to over Rs 90 crore. Post

divestment, the government's stake in the telecom major will fall to 52.97

per cent from the present 54.02 per cent.