VSNL enhances bonus ratio to 2:1

By Our Special Correspondent

NEW DELHI, AUG. 25. Videsh Sanchar Nigam Ltd. (VSNL) today announced an enhanced ratio of bonus shares to meet the eligibility criteria for domestic long distance (DLD) companies announced recently by the Government.

The board of the country's sole international communications company today decided to increase the issue of bonus shares from the earlier ratio of 1:1 to 2:1. With this move, the post-bonus capital of the company would be Rs. 285 crores. The DLD guidelines stipulate a minimum paid up equity capital of Rs. 250 crores in order to be eligible to apply for a national long distance licence.

The board at its earlier meeting held on July 27 had recommended bonus shares in the ratio of 1:1 due to which the paid up capital would have become Rs. 190 crores. Commenting on the future outlook, VSNL Chairman-cum-Managing Director, Mr. S. K. Gupta, said the opening up of the domestic long distance segment would create a new revenue stream for VSNL.

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Section  : Business
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