MUMBAI: Videsh Sanchar Nigam Ltd - theinternational communications gateway of India - has receivedoversubscription to its public issue of shares to the extentof around 125 per cent of its targetted amount of Rs. 75 crore reports, PTI.According to market sources, subscriptions totallingnearly Rs. 94 crore were received, mostly from retailinvestors. One million shares of the company were on offer tothe public with the minimum subscription being 10 shares.With one more day to go before the issues closestomorrow, sources said that they expected to get at leasttwice the targetted amount, as the last day usually sees arush for subscriptions. The issue opened on September 20.
Even with a steep pricing of Rs 750 per share, brokersinvolved in the issue said that it had generated a lot ofinterest among the small and medium investors.Strictly speaking it is not a public issue in theordinary sense, but a divestment of the Central government'sholding in VSNL In fact this is the first time that thegovernment is divesting its stake in a public sector entitythrough a public issue of shares.
The government's stake in VSNL will come down from 54.2per cent to 52.97 per cent after this issue.
As on March 31, 1999, the book value of VSNL shares wasRs. 576, while its earnings per share was Rs.144.85.ÆIn 1998-99, vsnl has earned a net profit of Rs.1376.10crore. It has been identified as a 'Navaratna' by thegovernment.09232102 b