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DoT in talks with FinMin for splitting TCIL IPO via piggyback listing

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By Anjana Das
New Delhi, March 3 (IANS) The Department of Telecommunications (DoT) in consultation with the Finance Ministry plans to split the initial public offering involving 25 per cent stake in telecom engineering and consultancy firm Telecommunications Consultants India Ltd (TCIL) into parts.

This will involve TCIL raising funds by issuing 10 per cent fresh equity shares and the government divesting 15 per cent of its equity in the company.

Sources said the 10 per cent IPO may mobilize Rs 600 crore required to fund TCIL’s own expansion plans and for its US subsidiary. The government share sale may fetch around Rs 1,000 crore.

As per the initial plan, the TCIL issue may come up around the July-September quarter. DIPAM will also shortly call for a meeting on the appointment of a merchant banker for the proposed IPO.

The market offer of the tecom consultancy firm is part of listing plan for six Central Public Sector Enterprises.

Sources said that DoT will soon move a cabinet note proposing the 25 per cent stake sale. This stake sale will also involve the company issuing fresh equity shares to mobilize resources for its own requirement as TCIL is undertaking many telecom and IT projects in India.

TCIL will use a provision called piggyback transactions of the disinvestment department, DIPAM. DIPAM rules say in case of issue of fresh equity in conjunction with the sale of the government stake (piggyback transactions) for listing, CCEA approval will be obtained by the ministry concerned — in this case, DoT.

Asked why the issue would go to the cabinet again given that the overall 25 per cent stake sale already has cabinet approval, sources said the original cabinet approval was not for the 15 per cent and 10 per cent split of equity.

“We need the funds for our project, so we had to go for the split,” said the source.

Piggyback funding has already been done in Kochin Refinery earlier. In any case 25 per cent is a very high for listing. Normally equity sale for IPO happens for 10 -12 per cent range. If government is going for 15 per cent stake sale, then give 10 per cent to company also which is struggling for cash.

TCIL has an orderbook of Rs 10,000 crore and it needs to give advance bank guarantees for executing the order. This requires funding support where the public offer will come handy.

So far Cabinet nod has been received for the overall 25 per cent equity dilution not for the splitting of the IPO into 15 per cent (for government) and 10 per cent (for TCIL), sources said.

TCIL is one of the six PSU whose IPOs are lined up next fiscal, as per DIPAM roadmap.

Sources said the company is banking on its JV with Bharti — Bharti-Hexacom — which operates in North East and Rajasthan for higher valuation for its shares in the upcoming IPO.

(Anjana Das can be contacted at [email protected])

–IANS
ana/am/prs

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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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