RailTel Corporation’s Rs 820 crore initial public offer (IPO) will open for subscription on February 16. The maiden public issue will close on February 18. The company has fixed the price band for the public issue at Rs 93-94 per share.
The initial public offer is an offer for sale of 8,71,53,369 equity shares by the government, out of which 5 lakh equity shares will be reserved for the company’s employees. Investors can bid for a minimum one lot of 155 equity shares and in multiples thereafter, after 13 lots.
The objective of the share sale is to divest government’s stake in RailTel Corporation. Currently, the government holds a 100 per cent stake in the company.
RailTel is a mini ratna (Category-I) central public sector enterprise, incorporated in September 2000. It is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India.
RailTel has more than 55,000 route kilometers of optical fiber cablenetwork and connects 5,677 railway stations across India.
RailTel Corporation’s IPO will be the sixth initial public offering this year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.
ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are book running lead managers to the issue.