State-run telecom firm BSNL's employees union is convinced that growth can happen without the company going for a listing, about which Communications Minister A Raja will discuss with the workers on Thursday.
Union general secretary V A N Namboodiri said, "Tomorrow we have a meeting with the Minister. We are opposing the IPO, as we feel the expansion of BSNL can happen without it and we are not going to change our stand".
In fact, Raja is likely to announce some initiatives regarding BSNL's mega IPO, soon after meeting the union.
A senior BSNL official said, "It is difficult to guess the file is in the Department of Telecom. But if the government fails to convince the union and goes ahead with the IPO plan, things could be difficult. The union has over three lakh employees and the network of 31 million fixed line and 38 million GSM mobile subscribers depend on them.
The board of state-run BSNL is understood to have proposed to sell 10 per cent of the government's 100 per cent stake in the company through an initial public offer.
A senior BSNL official said discussions are going on for a 10 per cent dilution and the management is aware of the obstacles from the union.
"The contention that listing is necessary for expansion and the grant of Navratna status, is not acceptable. Other PSUs, including HAL, has been granted Navratna without listing. LIC, which has over 78 per cent market share, has not been listed," Namboodiri said.
The BSNL management had earlier withdrawn IPO plans following opposition from the union.
The company, which has nearly 70 million subscribers, is valued at around $100 billion. A 10 per cent dilution would fetch about $10 billion, making it the biggest IPO in India.
Faced with stagnating turnover and a possible marginal dip in profitability in the current financial year, BSNL may have to take the IPO route to fund future expansion plans.