Mahanagar Telephone Nigam Limited

active

Mahanagar Telephone Nigam Ltd. (MTNL) was incorporated by the Department of Telecommunications on February 28, 1986 to provide basic telephone services in New Delhi and Mumbai. The government extended MTNL's license to provide basic telephone services for 15 years in April 1998. In February 2001, MTNL launched GSM cellular mobile service in both the metro cities of Delhi and Mumbai. In March 1995, the government sold 9.57% of the common shares, which represented 5% of the total equity, for US$51.6 million through the local stock exchanges in Mumbai, Delhi, Chennai & Calcutta. The share sale turned out below the government expectations, which offered shares equivalent to a 33% stake. In a second transaction, the government sold 60 million shares through Global Depositary Receipt (GDR) issue for US$358 million in December 1997. As part of this tranche, MTNL granted its managers a greenshoe option exercisable within 30 days to purchase up to an additional 5 million GDRs which resulted in a paid-in capital amount of US$59.8 million to the government. In November 2001, MTNL listed on the New York Stock Exchange (NYSE). Over 31,000 American Depositry Receipts (ADRs) were traded at a price of US$5.90 for a total of US$182,900. After GDR, the government owned 56.25% of MTNL. see www.mtnl.net.in