E-Paper
RailTel Corporation’s IPO opens tomorrow. All you need to know
The state-owned RailTel’s initial public offer is an offer for sale of 8,71,53,369 equity shares by the government, out of which 500,000 equity shares will be reserved for the employees. The public issue will open for subscription on February 16 and will close on February 18.
RailTel Corporation of India’s ₹819 crore initial public offer (IPO) will open for subscription from Tuesday till February 18. The provider of broadband telecom and multimedia networks across the country is a ‘Mini Ratna’ (Category-I) Central Public Sector Enterprise, wholly-owned by the government and under the administrative control of the ministry of railways. The shares of the company are all set to be listed on the National Stock Exchange and BSE on February 26.
Here is all you need to know about RailTel’s IPO:
1. The state-owned RailTel’s initial public offer is an offer for sale of 8,71,53,369 equity shares by the government, out of which 500,000 equity shares will be reserved for the employees.
2. The public issue will open for subscription on February 16 and will close on February 18. The issue will also open for a day on February 15 for anchor investors.
3. Investors can bid for a minimum of 155 equity shares and in multiples of 155 thereafter up to 13 lots.
4. The quota for retail investors is fixed at 35 per cent, qualified institutional buyers quota is 50 per cent and non-Institutional Investors segment will account for 15 per cent
5. The company after consultations has fixed the price band at ₹93-94 a share. In the higher price band, the minimum application size for retail investors comes to ₹14,570.
6.The main objective of the IPO is to carry out the disinvestment of 8,71,53,369 equity shares held by the government. The government plans to raise Rs. 819 crore through the public offer.
7. Since the IPO is entirely an offer-for-sale the company will not receive any fund from it. The proceeds from the share sale will go directly to the government as it holds a 100 per cent stake in the company
8. The share allocation will take place around February 23 followed by unblocking of funds from the Applications Supported by Blocked Amount (ASBA) account on February 24. Eligible investors will get shares on February 24 or 25.
9. RailTel considers having a robust senior management team with significant industry experience, and a consistent record of financial performance and growth to be their strength.
10. For the financial year (FY) ending in March 2020, the company had reported a net profit of ₹141 crore as compared to ₹135 crore in the previous FY.
