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MTNL shares listed at NYSE; may raise money through ADRs

Mahanagar Telephone Nigam Ltd on Thursday became the ninth Indian company to be listed at the New York Stock Exchange and the shares changed hands at $5.9 a share.

"Over 31,000 American Depository Receipts have been traded on the floor during the first 45 minutes of trading at $5.9 a ADR and there was more demand for the scrip," Narinder Sharma, chairman and managing director, MTNL, told reporters from NYSE.

Asked whether the company has plans to enter the American market directly to raise funds by issuing fresh ADRs, Sharma said, "yes, as our plans unfold in the next two to three years, we would look at the option."

"The American market is bigger and it has specific allocation for the telecom sector as well as region specific funds. In case we do need to come here, there will be greater response from the American investors," Sharma added.

The government had divested approximately 275.6 million shares (including 70 million shares through Global Depository Receipt) upto March 2001.

MTNL's outstanding shares as on March 31, 2001 were 630 million (including 30 million to GDR) out of which government owns 354.3 million shares (56.25 per cent).

After the listing of MTNL scrip, NYSE chairman Bick Grasso said that about 50 Indian companies were likely to be listed at the NYSE in the next two to three years.

Grasso appreciated MTNL management and the Indian government for taking decision to list MTNL scrip at NYSE post September 11 terrorist attack on the US.

"Investors across the world and also in the US are eagerly waiting for participating in great Indian companies," Grasso said.

Basic telecom operator in Delhi and Bombay recently launched its cellular services under the brand name Dolphin besides offering host of other communication services including Wireless in Local Loop (WLL), ISDN and Internet.

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