BSNL Rs 40000 Cr IPO : Best Upcoming IPOs for Indian Investors

August 10, 2008


BSNL IPO of 40,000 crore rupees will be the highest ever IPO in India after Reliance Power IPO (Rs 11,500 crore ). BSNL is going to announce the time line of this 10% disinvestment plan anytime now despite the strike threat from its 3 lakh employees.

Employee unions of BSNL, have rejected the company’s and communications minister A Raja’s offer to give all the 3 lakh employees 500 shares at Rs 10 each. This would have fetched each employee a minimum of Rs 1.5-2 lakh at the time of BSNL’s listing.

There is no possibilities that, there will be too much rush to buy BSNL IPO like Reliance Power IPO as on January 2008.  Anil Ambani group’s Reliance Power IPO on January 2008 generated a demand of close to Rs 1 lakh crore (Rs 1 trillion) within four hours of start of the book building process, with the issue getting oversubscribed nearly 10 times.

Indian stock market is currently is around lowest value. Investors are not much interested in locking the money on stock market. Inflation rate is still high. In this situation, people can get BSNL IPO at cheapest price.

There is high possibility that the value of BSNL share will go high in near future. Currently BSNL valuation is $100 billion according to company’s management. According to analysts, the $37-45 billion valuation is a fair one. BSNL has about 8.1 crore subscribers, 1 crore more than the country’s largest private operator, Bharti Airtel, which is valued just over $38 billion.

3G and other value added service in telecom sector will boost the revenue of BSNL significantly in future. Investing in BSNL can be totally safe this time.

Comments (1)

  1. Tarkeshwar Choudhary says:

    i want to buy bsnl ipo

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