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Policy & Regulation
BSNL IPO: Unions reject Raja’s 500 shares ESOP offer
TT Correspondent |  New Delhi |  08 Aug 2008

The meeting between Communications Minister A Raja and BSNL Union representatives failed to arrive at a consensus for the company’s IPO plans. The company board now faces a tough call of halting its IPO plans (which looks unlikely) or going ahead with the listing against the wishes of its Employees’ Unions.


Earlier in the day, Raja offered to give all the 3 lakh employees of BSNL 500 shares at Rs.10 each. The logic applied was that BSNL will be listed in the range of Rs 300-Rs 400.


The Unions however stick to their demand and expressed strong opposition to the IPO plans. The secretary general of the BSNL employee unions, V A N Namboodiri, said that the employees were totally against the plans. He refuted any divide amongst the various Unions and alleged that it was a ploy by the management to exploit the situation.


Meanwhile A Raja seemed to be supporting the board over the IPO proposal. He said, "I only told them that the listing is good for the company. Even the BSNL chairman, the telecom secretary and others explained to the unions that an IPO would benefit the company. It would bring company accounts in the public domain, help maintain transparency and accountability and allow better management of resources," indicating that the board decision is right for the company.


In wake of such opposition and uncertainties it is up to the board to decide its next course of action.

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08 Aug 2008(IST)  
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