Calcutta, Nov 19: Videsh Sanchar Nigam (VSNL), the government-owned monopoly provider of international telephony, plans to list the scrips of its subsidiary, Videsh Sanchar Seamless (VSSL)m on the New York Stock Exchange.VSSL is being developed as a specialised arm of VSNL to provide Internet and other value-added services."We are seriously considering listing the scrips of VSSL on NYSE. But no decision has been taken as yet," VSNL chairman and managing director Shailendra Kumar Gupta told The Financial Express here on Friday. Its listing on Nasdaq is also under consideration. The listing on NYSE and Nasdaq would substantially increase the share value of the subsidiary which in turn would help the VSNL share and its shareholders, Gupta said. "The overall benefit will come to VSNL," he said.
VSNL reported a net profit of Rs 1,325 crore in 1998-99 on revenues of Rs 7,175 crore. Its earning per share rose to Rs 139.49 from Rs 101.88 in the previous year. Gupta made it clear that VSSL would continue as a subsidiary of VSNL and there was no question of hiving off the company.
He said a specialised company is necessary to capture the growing Internet market and provide services of an international standard.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.