The price band of Videsh Sanchar Nigam Ltd’s Euro issue is likely to be finalised around Rs. 1,400. The company hopes to sell the issue by projecting the booming telecom service market and its special role as the monopoly international carrier of India. According to sources monitoring the offerings, almost all the 13 offerings received so far ranges from Rs. 2,000 to Rs. 1,200. The highest offering is by Barclays De Zoette Wedd and the lowest from Daiwa Securities. VSNL has offered 35,000,000 global depository receipts representing 17,500,000 equity shares and the road show has reached its final phases in the US now.
IDBI to be made a company
The Government has initiated moves to convert the Industrial Development Bank of India (IDBI), into a company. The IDBI is at present a wholly-owned corporation of the Government of India set up by an Act of Parliament. According to top sources in the banking division of the Finance Ministry, a Bill is likely to be introduced in the monsoon session of Parliament to amend the IDBI Act, 1964, to facilitate the transition.
Dynavision to be referred to BIFR
Dynavision Ltd., manufacturers of Dyanora and Dyanora National range of audio and video equipment, will be referred to the Board for Industrial and Financial Reconstruction (BIFR) as its net worth has been eroded by more than 50 per cent. The board of directors, in its report, has noted that the company is potentially sick. The report goes on to add, “On account of the loss of Rs. 628.05 lakhs, the net worth of the company has eroded by more than 50 per cent of peak net worth in the five preceding financial years.