The union had also rejected the argument that BSNL was in need of funds for expansion and hence it was taking the IPO route. BSNL is already having more than Rs 35,000 crores stashed in banks, the union claimed.
BSNL is conservatively valued at $ 100 billion and 10 % equity dilution would have fetched the state-run company $10 billion (Rs 40,000 crore) from the market. The interesting point is that none of the amount through IPO will come to BSNL, it will directly go to government, BSNL-EU general secretary V N Namboodiri claimed.
Last week, BSNL CMD Kuldeep Goyal had said: Employees acceptance is critical to the process to start and succeed...we are in no hurry for the IPO. We have made no tangible progress toward any consensus on IPO. PTI