MTNL sees NYSE listing in June

MTNL sees NYSE listing in June
REUTERS

NEW DELHI, MAY 2: India's state-run Mahanagar Telephone Nigam Ltd (MTNL) has completed its filing with the US Securities and Exchange Commission and expects to list its share on the New York Stock Exchange (NYSE) around the third week of June, a senior company official said on Tuesday.

The listing would make the state-run company the third Indian firm to list on the NYSE after ICICI Ltd, and its offshoot, ICICI Bank. MTNL had initially planned to list its shares on NYSE by mid-March by converting some of its global depositary receipts (GDRs) into American depositary receipts.

The firm offers fixed-line phone and Internet access services in New Delhi and Bombay, and enjoys a stronghold of about four million telephone service subscribers in the two cities, thanks to its origins as a government monopoly.

MTNL, of which the Indian government holds 56 per cent shares, has appointed Shearman and Sterling as legal consultants for the listing. It raised Rs 16.35 billion ($ 374.7 million) in November 1997 through a GDR issue.

Officials of the MTNL, which launched a partnership with MasterCard International for payment of bills through the credit card, said the company planned to launch its GSM-based cellular phone services by the end of June.

"By June-end, we plan the soft launch," company chairman Srinivas Rajagopalan told reporters on the margins of the news conference, adding that regular GSM mobile services could start anytime after that.

MTNL denied domestic media reports which said it had been asked to suspend the GSM project activities following an inquiry into the purchase of GSM equipment.

"MTNL has not received any communication to suspend the GSM project related activities," an MTNL statement said, adding that the plan was working according to a "pre-determined schedule."

He said that all deals relating to GSM project including tendering process was absolutely transparent. "MTNL is determined to give its valued subscribers the privilege of enjoying an affordable cellular service, as per the promise. In view of highly-competitive price obtained in the open tender process by MTNL, the company is in a position to offer an affordable price for a very high quality of technology," he said, adding that soft launch of MTNL's cellular service is scheduled for June end. Asked whether private cellular operators were lobbyingagainst MTNL's entry into mobile services, Rajagopalan said, "It was for everybody to guess."