The government is looking to divest up to 25 per cent stake in RailTel Corporation through initial public offering (IPO), and is scouting for advertising agencies to manage the listing process. According to sources, the IPO will hit the market around mid-January 2020. "The Department of Investment and Public Asset Management (DIPAM) requires services of a reputed advertising agency with experience and expertise in public offerings in capital markets to act as an advertising agency for RaiTel IPO," said the Disinvestment Department.
The proposals are to be submitted by November 28. The cost of hiring the ad agency will be borne by -- DIPAM, RAILTEL and the BRLMs (Book Running Lead Managers). RaiTel is a Miniratna PSU and 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 tracks. The company provides broadband telecom and multimedia network across the country.
In December, the Cabinet Committee on Economic Affairs approved a plan to list six public sector companies, including RailTel Corp. The Indian Railways Catering and Tourism Corporation (IRCTC) got listed this fiscal, after its IPO evoked tremendous response from all categories of investors, with the issue being subscribed more than 111 times.
The issue, which divested 12.6 per cent of the government's stake in the Central Public Sector Enterprise (CPSE), is expected to generate a revenue of Rs 645 crore. It is the second CPSE to be listed this fiscal. Earlier this fiscal, DIPAM completed the Rail Vikas Nigam Limited (RVNL) IPO raising Rs 466 crore. The government divested its 12.12 per cent stake in the company.
(IANS copy only headline changed)
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