RailTel IPO to open on Feb 16; price band set at ₹93-94

The IPO will be a complete offer of 8,71,53,369 equity shares held by the government. Of this, 5 lakh equity shares may be reserved for the company's employees.

State-owned information and communications technology infrastructure provider RailTel corporation of India will launch its maiden initial public offer (IPO) for subscription on February 16. The IPO was first supposed to be launched in January. RailTel Corporation was incorporated in the year 2000 and is wholly owned by the government of India and administered by the ministry of railways. As on 30 June 2020, the company has covered an optic fiber network of over 55,000km and 5677 railway stations. The company has data centers in Haryana, Gurugram, Secunderabad, and Telangana.

Investors can bid for a minimum 155 equity shares and in multiples of 155 equity shares thereafter. (AP/ Representational)

Here’s everything you need to know about RailTel IPO which opens on February 16:

1. The price band for the public issue has been fixed at ₹93-94 per share, which is 9.30-9.40 times the face value of equity shares.

2. The IPO will be a complete offer of 8,71,53,369 equity shares held by the government. Of this, 5 lakh equity shares may be reserved for the company's employees.

3. The offer will give ₹819.24 crore at higher price band to the government. Therefore, the company will not get any money from this offer.

4. Investors can bid for a minimum 155 equity shares and in multiples of 155 equity shares thereafter.

5. The offer will close on February 18.

6. ICICI securities, IDBI capital markets & securities and SBI capital markets are the book running lead managers to the issue. The registrar of the IPO is KFintech Private Limited.

7. Investors who are willing to invest can apply for the IPO online using either UPI or ASBA as payment method. ASBA IPO application will be available in net banking whereas UPI IPO application will be offered by brokers who don't offer banking services.

8. This would be the sixth IPO this year, after Indian Railway Finance Corporation (IRFC), Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.