Sbi Caps, Kotak Likely To Lead-Manage Vsnl Float
The Videsh Sanchar Nigam's (VSNL) domestic offering will be launched in September or October. According to a source, the Rs 80-crore issue will be lead managed by SBI Capital Markets and Kotak Mahindra.
"These two will lead-manage the issue which will be priced at a 10 per cent discount to the GDR issue price. There is a possibility that a few more would be added as joint lead-managers," the source, closely involved in the VSNL domestic offering process, said.
The domestic offer price, according to the GDR offer document, is expected to be Rs 900.
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The source added that the issue could not be launched at this stage as the market was passing through uncertainty. "The secondary market will revive if budget proposals like the one concerning double taxation of dividend is cleared by the Parliament. The primary market revival will follow later. We believe it will take another five to six months," the source added.
The issue was slated for launch this May. Brokers say the company is seeking to launch the domestic issue to improve the liquidity of the stock. This is reflected in the trading activity the scrip witnessed yesterday. The counter, on the Bombay Stock Exchange, witnessed trading in only 100 shares at a price of Rs 1,000 while on the National Stock Exchange it did not see any trading. The previous close on the NSE was Rs 980.
The source said VSNL was not so keen to mobilise funds through the domestic offering. "The domestic issue is a small offering compared with the GDR. The delay will not have any impact on the plans chalked out by the company."
The company is also planning to issue about six lakh shares under the employee stock option scheme.