RailTel IPO: State-run firm opens public subscription on 16 Feb, sets price band at Rs 93-94 per share
The IPO is entirely an offer-for-sale through which government will offload 87,153,369 equity shares amounting to a 27.16 percent stake, the company said
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.
Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply
The RailTel Corporation IPO was subscribed over 11 times, receiving bids for 68,40,41,660 shares
RailTel Corporation IPO subscribed over 11 times on final day of bidding process; employee portion sees 1.85 times interest
The share allocation is likely to be finalised on 23 February and subsequently, the listing may take place on 26 February
RailTel reported a stable financial performance over FY18-20, with the company reporting 7.5 percent CAGR rise in top-line to Rs 1,128 crore in FY20