RailTel IPO to open for subscription on February 16
From October to December 2020, the IPO market witnessed an amazing investor response. Many fundamentally strong companies knocked into the stock markets through Initial Public Offers (IPOs). The second month of this calendar year is going on and IPOs of companies like IRFC, Indigo Paints, HFFC and Stove Craft have already been listed on the stock exchanges. Now the IPO of the state-owned company RailTel Corporation of India is opening for subscription from 16 February. Investments can be made in this IPO by February 18. The size of this IPO is Rs 819 crore.
RailTel IPO: Know the price band and other details
The company has fixed the price of each share for this IPO at Rs 93-94. Through this IPO, 87,153,369 crore equity shares of the government will be allocated through offer-for-sale. In this way, the government will reduce its stake to 27.16 percent. At the same time, anchor investors will be able to subscribe to the issue on 15 February. 50 percent of this issue is reserved for qualified institutional buyers. On the other hand, 35 per cent is reserved for retail investors and 15 per cent is for non-institutional investors.
Potential date of allotment and listing of shares
Allotment of this IPO is expected to be completed by February 23, 2021, according to stockbrokers. At the same time, its listing is expected to be on the stock market on 26 February 2021.
ICICI Securities, IDBI Capital, SBI Capital Markets are the merchant bankers of this issue.
About RailTel Corporation
RailTel was founded on September 26, 2000. It was established with the goal of realizing additional revenue through the modernization of systems related to the control, operation and safety of trains and the development of nationwide broadband and multimedia networks.
It is a public sector mini ratna company. It is the country’s largest provider of neutral telecom infrastructure. This company has a large optical fiber network. The company provides broadband telecom and multimedia networks across the country. As of June 30, 2020, the company’s optical fiber network is 55,000 km long and spans 5,677 railway stations in various cities of the country.
