VSNL looks up on spurt in ADR

DALAL STREET SPIKES

The share price of the Tatas-controlled Videsh Sanchar Nigam Ltd (VSNL) gained 11.8 per cent on back of the gain in its American depositary receipts which surged five per cent on Friday night.

The counter, after touching the day's high of Rs 203.30, ended at Rs 210.15 with more than 1.96 lakh shares changing hands on the BSE.

Analysts said while today's gain was news-driven with the company's ADRs gaining 46 cents or 5.3 per cent to $9.02, the stock has been attracting buying interest in anticipation that the recent strategic partnership between VSNL and Asia Netcom will be good for the company.

Under the new agreement, the company's proposed Tata Indicom India-Singapore cable connecting Chennai and Singapore will be ready for service by the fourth quarter of 2004 and aims to significantly enhance India's connectivity in the Asia-Pacific region and the US via the pacific.