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.