The government of Punjab has rejected the sole bid for a strategic stake in state-run Punjab Communications Ltd, a senior government official said on Friday.
"The bid price was too low," Vini Mahajan, the Punjab government's disinvestment director, said.
She said the government received two responses to its offer to sell a 69.79 per cent stake in the firm.
"One was a regret letter and the other a proper bid."
The company's shares were down about 19 per cent at Rs 63 on Bombay Stock Exchange on Friday morning.