RailTel IPO subscription opens today: Check price band, grey market premium and more
The initial public offer (IPO) of RailTel Corporation of India will open for subscription today (February 16). RailTel is a telecom company which provides broadband and VPN services. It 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. It is a mini-ratna PSU.
RailTel has fixed a price band of Rs 93-94 a share for its initial share-sale. The three-day issue will close on February 18. A lot will cost Rs 14,570 and comprise 155 shares.
The IPO allotment will be done on February 23 and shares will be credited to demat account on February 24. Listing of RailTel shares on NSE and BSE will take place on February 26.
The Rs 819 crore cr IPO is entirely an offer-for-sale. The government will offload 87,153,369 equity shares, amounting to 27.16 per cent stake. At the upper end of the price band, the government will raise a little over Rs 819 crore.
According to the company's statement, half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, 15 per cent for non-institutional bidders.
RailTel's optic fiber network covers over 55,000 kms and 5677 railway stations in the country.
Earlier in December 2018, the government had approved IPO of RailTel Corporation by diluting up to 25 per cent stake.
RailTel was incorporated in 2000 to modernise the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network, laying optical fiber cable using the right of way along railway tracks.
