The initial public offering (IPO) of state-owned RailTel Corporation of India will open for public subscription on Tuesday. The anchor investors portion would be open for subscription on Monday.
The IPO is entirely an offer-for-sale through which government will offload 87,153,369 equity shares, amounting to 27.16 per cent stake, according to a company statement.
The government expects to raise a little over ₹819 crore through the sale of the IPO.
The RailTel IPO is open for three days; it will close on February 18.
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.
The mini-ratna PSU provides broadband telecom and multimedia network on railway stations across the country.
As on June 30, 2020, its optic fiber network covers over 55,000 km and 5,677 railway stations across towns and cities.
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.