 "RailTel IPO to open on February 16; price band fixed at Rs 93-94")
State-owned RailTel Corporation of India, on Thursday, fixed the price band of Rs 93-94 a share for its initial share-sale, which will open for public subscription on February 16.
The initial public offer (IPO) is entirely an offer-for-sale through which government will offload 87,153,369 equity shares, amounting to 27.16 per cent stake, the company said in a statement.
At the upper end of the price band, the government would raise a little over Rs 819 crore.
The three-day issue would close on February 18 and the anchor investors portion would be open for subscription on February 15.
The mini-ratna PSU 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.
The company provides broadband telecom and multimedia network across the country.
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Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, 15 per cent for non-institutional bidders.
As on June 30, 2020, its optic fiber network covers over 55,000 kms and 5677 railway stations across towns and cities in the country.
ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue.
In December 2018, the cabinet had approved IPO of RailTel Corporation by diluting up to 25 per cent government stake.
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