New Delhi, Feb 8 (IANS): The Department of Investment and Public Asset Management (DIPAM) has called on the interested merchant banks to make presentations on Tuesday for the selection of a merchant banker-cum-selling broker for disinvestment of the government's entire shareholding in Tata Communications through offer for sale (OFS).

A total of 11 merchant banks are in the fray including Axis Capital, Credit Suisse Securities (India) Private Ltd, Elara Capital (India), Goldman Sachs (India) Securities and ICICI Securities.

Last month, DIPAM said that the Centre intends to disinvest its entire shareholding of 26.12 per cent of paid-up equity capital in Tata Communications, erstwhile Videsh Sanchar Nigam Ltd (VSNL), through OFS by promoters through the stock exchanges and thereafter to the strategic partner as per SEBI's norms. It invited proposals from eligible merchant bankers to assist and advise the government in the process.

The other merchant bankers in the fray are IDBI Capital Markets & Securities, IIFL Securities, JM Financial Limited, Kotak Mahindra Capital Company, SBI Capital Markets and YES Securities India.

VSNL, a central public sector enterprise was privatised in 2002 by disinvesting 25 per cent shareholding along with transfer of management control to Panatone Finvest Limited, the strategic partner (SP). Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Limited (TCL). Tata Sons holds 14.07 per cent stake in the company.

Around 11.55 a.m., shares of Tata Communications on the BSE were trading at Rs 1,042.30, higher by Rs 4.85 or 0.47 per cent from its previous close.