RailTel IPO: State-run firm opens public subscription on 16 Feb, sets price band at Rs 93-94 per share

New Delhi: State-owned RailTel Corporation of India on Thursday fixed a price band of Rs 93-94 a share for its initial share-sale, which will open for public subscription on 16 February. The initial public offer (IPO) is entirely an offer-for-sale through which government will offload 87,153,369 equity shares, amounting to 27.16 percent stake, the company said in a statement. At the upper end of the price band, the government would raise a little over Rs 819 crore. The three-day issue would close on 18 February and the anchor investors portion would be open for subscription on 15 February. 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. Half of the issue is reserved for qualified institutional buyers, 35 percent for retail investors and 15 percent for non-institutional bidders. As on 30 June, 2020, its optic fiber network covers over 55,000 kms and 5677 railway stations across towns and cities in the country. 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 percent government stake.