Tata Communications: Worth the wait for Original Shareholders
Tata Communications Ltd (formerly known as Videsh Sanchar Nigam Limited) is a $2.9 billion company listed on the Bombay Stock Exchange and the National Stock Exchange of India and is the flagship telecom arm of the $103.3-billion Tata Group. Hemisphere Properties India Ltd (HPIL) is a public company in which 51.12% is held by Government of India (GOI) and balance share is held by Panatone Finvest Limited (a Tata group company). Presently, shares of the company are not listed on any stock exchange and the company do not have any revenue from operations. Transaction In 2002, GOI carried out disinvestment exercise of 25% of its equity holding in the Tata Communications (erstwhile VSNL) and terms of the bid required that bidder will take into account value of land which would remain with the VSNL and exclude surplus lands of approx. 740 acres excluding 95 acres which is in control of defence ministry. Panatone Finvest Limited (PFL) was successful bidder in this process. Subsequ...