Updated: February 11, 2021 1:35:54 pm
The Rs 819 crore initial public offering (IPO) of RailTel Corporation of India will open on Tuesday, February 16, 2021, and will be available for subscription till Thursday, February 18, 2021. The price band of the IPO has been fixed at Rs 93-94 per share of the face value of Rs 10 each.
RailTel is a government-owned information and communications technology infrastructure provider and provides broadband telecom and multimedia network across the country.
The IPO is entirely an offer-for-sale through which government will offload over 8.71 crore (8,71,53,369) equity shares, as per the information given in the red herring prospectus. The government could raise up to Rs 819.2 crore at the upper end of the price band.
RailTel has also reserved up to 5 lakh equity shares for its employees, red herring prospectus said.
Investors who wish to subscribe to RailTel’s IPO can bid in the lot of 155 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,570 to get a single lot of RailTel. The shares are proposed to be listed on both BSE and the National Stock Exchange (NSE).
Ahead of the public offer, the anchor investors’ portion will be available on Monday, February 15, 2021.
ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are the book running lead managers to the RailTel IPO while KFin Technologies is the registrar of the issue.
The company is one of the largest neutral telecom infrastructure providers in the country, owning an optical fibre network on the right of way along the railway tracks. It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways.
As on June 30, 2020, its optical fibre network covers over 55,000 kms and 5,677 railway stations across towns and cities in the country.
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