New Delhi: State-owned RailTel Corporation of India is all set to go for its initial public offer (IPO) on February 16. The mini-ratna PSU is one of the largest neutral telecom infrastructure providers in the country owning an optic fiber network on exclusive Right of Way (RoW) along railway track. The company provides broadband telecom and multimedia network across the country.
As on June 30, 2020, its optic fiber network covers over 55,000 kms and 5677 railway stations across towns and cities in the country.
Here is all you want to know about the RailTel IPO
RailTel has fixed a price band of Rs 93-94 a share for its initial share-sale, which will open for public subscription on February 16.
The IPO is entirely an offer-for-sale through which government will offload 87,153,369 equity shares.
This amounts to 27.16 per cent stake, Railtel said.
At the upper end of the price band of the RAILTEL, the government would raise a little over Rs 819 crore.
The three-day issue would close on February 18.
Tanchor investors portion would be open for subscription on February 15.
Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, 15 per cent for non-institutional bidders.
ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue.
In December 2018, the cabinet had approved IPO of RailTel Corporation by diluting up to 25 per cent government stake.
With PTI Inputs