Kolkata: Union Disinvestment Minister Arun Shourie on July 11 said the initial public offering (IPO) for reducing the government's existing stake in five companies – Videsh Sanchar Nigam Limited (VSNL), Bharat Aluminium Company Ltd (BALCO), Indian Petrochemicals Corporation Limited (IPCL), Computer Maintenance Corporation (CMC) and Indo-British Petroleum (IBP) – might come within next six months.

"We will be entering into negotiations with strategic partners from next week and after discussions will place our shares in market in six months," Shourie told reporters after addressing members of Confederation of Indian Industry (CII).

"In coming few months, government will be placing one good scrip after another to raise resources and also to reward Indian investors," Shourie added.

Asked whether the government was going to allow Bharat Sanchar Nigam Limited (BSNL) to raise funds through IPO, the Disinvestment Minister said, "It is for the Board of BSNL to decided whether they will go for IPO or not. We are going to transform BSNL and Mahanagar Telephone Nigam Limited (MTNL) from Ministry-managed companies to Board-managed one."

BSNL chairman and managing director Prithipal Singh had said in Kolkata last week that they would adopt IPO route if the government did not reimburse the expenditure for development of telephony in rural areas and also licence and spectrum fee.

The Cabinet Committee on Disinvestment (CCD) had on July 10 approved the proposal for reducing the balance of government stake in Tata controlled CMC Limited and VSNL Limited, Reliance controlled IPCL Limited, Indian Oil controlled IBP Limited and Sterlite controlled BALCO.

PTI