BPL Cellular, the mobile phone division of India's BPL Group, has received government approval for an Rs8.8 billion ($196 million) ADR issue. The approval was announced by Commerce and Industry Minister Murasoli Maran as part of a general approval of 34 foreign direct investment proposals.
The BPL Cellular ADR issue will be the first privately owned Indian telecom company to raise money in the United States. The company owns and operates cellular and mobile phone services in Mumbai, Kerala, Tamil Nadu and Maharashtra, which are all in the south and west of the country.
It is unclear who will be buying the ADR issue, but previous investors in the BPL group include France Telecom and US West - recently acquired by Qwest. As an unlisted company, the ADR will likely be sold to one strategic investor. Late in 1997, BPL Cellular withdrew plans for a listing on the New York Stock Exchange after a series of roadshows revealed scant investor interest in the company. Despite repeated attempts, BPL could not be contacted to comment on the deal.
