VSNL swings on receipt of $169 million

DALAL STREET SPIKES

VSNL stock witnessed volatile trade after the company announced the receipt of a consideration of $169.04 million from the sale of its entire holding in global satellite operator Intelsat.

The stock in intra day trades was up more than 7.5 per cent to Rs 246, before slipping on profit booking to end 0.92 per cent lower at Rs 220.75.

Analysts said, cautious sentiment ahead of the budget pulled the stock down at close. VSNL had earlier said it would use proceeds of sale of its 5.42 per cent stake in US satellite firm Intelsat for expansion and investment activities.

VSNL had recently won a bid to acquire a 26 per cent stake in South Africa's Second Network Operator (SNO) that would give the company a mandate to develop and provide national long distance and fixed-line networks in South Africa.