The government on Monday called on the interested merchant banks to make presentations on Tuesday for the selection of a merchant banker-cum-selling broker for disinvestment of its stakes in Tata Communications Ltd (TCL) via offer for sale.
A total of 11 merchant banks are in the fray including Axis Capital, Credit Suisse Securities (India) Private Ltd, Elara Capital (India), Goldman Sachs (India) Securities and ICICI Securities.
The latest development comes a month after Department of Investment and Public Asset Management (DIPAM) announced its plans to sell its residual 26.12 per cent stake in total communications, erstwhile Videsh Sanchar Nigam Ltd (VSNL), through an offer for sale (OFS) by promoters through the stock exchanges and thereafter to the strategic partner as per SEBI’s norms.
In January it had invited proposals bids from merchant bankers bankers-cum-selling brokers to assist and advise the government in the process.
The other merchant bankers in the fray are IDBI Capital Markets & Securities, IIFL Securities, JM Financial Limited, Kotak Mahindra Capital Company, SBI Capital Markets and YES Securities India.
VSNL, a central public sector enterprise was privatised in 2002 by disinvesting 25 per cent shareholding along with transfer of management control to Panatone Finvest Limited, the strategic partner (SP). Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Limited (TCL).
Tata Sons holds 14.07 per cent stake in the company.
The IT major posted a rise of 4.28 per cent in consolidated profit after tax for December quarter. It had reported a consolidated net profit of Rs 309 in the year-ago period.
Around 12.57 a.m., shares of Tata Communications on the BSE were trading at Rs 1,031.00, down 0.62 per cent from its previous close.