VSNL may demerge its telecom business into a separate entity which may be listed on the stock exchange.

VSNL may demerge its telecom business into a separate entity, which may be listed on the stock exchange. The government and the Tata Group are currently discussing the move. The shareholding pattern of the new company is likely to be very similar to VSNL’s, which means that the Tata Group and the union government would continue to hold 50 per cent and 26 per cent stake respectively in the new company.