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RailTel Corporation of India files draft papers with Sebi for Rs 700 crore IPO

RailTel's IPO will be complete offer for sale (OFS) from the government out of its 100 per cent stake in the company

twitter-logoBusinessToday.In | October 2, 2020 | Updated 16:45 IST
RailTel Corporation of India files draft papers with Sebi for Rs 700 crore IPO
RailTel Corporation to raise Rs 700 crore via IPO

State-controlled telecom infrastructure firm RailTel Corporation has filed Draft Red Herring Prospectus (DRHP) with the capital market regulator Sebi for an initial public offer (IPO) on September 29. The Miniratna PSU intends to raise Rs 700 crore by offering up to 8.66 crore equity shares. 

The IPO will be complete offer for sale (OFS) from the government out of its 100 per cent stake in the company. The issue consists an offer for sale of 8,66,53,369 shares and employee reserved portion by the government.

Incorporated in 2000, RailTel 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 provides broadband telecom and multimedia network across the country. As of June 30, the company's optic fibre network covers over 55,000 km and 5,677 railway stations across towns and cities in the country.

ICICI Securities, IDBI Capital, SBI Capital Markets Ltd are merchant bankers to the issue. 

In December 2018, the Cabinet Committee on Economic Affairs had approved a plan to list RailTel Corporation by diluting up to 25 per cent government stake.

Also Read: Warburg Pincus invests Rs 700 crore in Home First Finance, IPO likely by March 2021

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