Turmoil May Push Back Gdr Issue Dates

The recent turmoil in global stock markets could push back the GDR launch dates of Mahanagar Telephone Nigam Ltd (MTNL), Container Corporation of India Ltd (Concor), and Indian Oil Corporation (IOC), upsetting the governments plan to raise Rs 7,000 crore through disinvestments in 1997-98.

The government had planned to offlload upto 200 million shares (or 25 per cent of the equity capital) of Gas Authority of India Ltd (GAIL). It had hoped to raise $700-800 million (Rs 2,500-2800 crore) through the global depository receipts offering.

The GAIL scrip which was ruling at about Rs 190 two months ago fell to a new low of Rs 123 on Tuesday. The lead managers to the GAIL issue are Morgan Stanley, Jardine Fleming and BZW.

Mahanagar Telephone Nigam Ltd (MTNL) was to have kicked-off its roadshows on November 20.

Top MTNL officials on Tuesday said it was too early to say whether the volatility in global markets would affect its proposed GDR issue. We have time (until November 20) and will decide as things develop, one source said.

The joint global co-ordinators for the MTNL issue (GDR-cum-IPO) are Goldman Sachs, HSBC Capital Markets and Merrill Lynch.