State-owned information and communications technology infrastructure provider RailTel Corporation of India has decided to launch its maiden public offer for subscription on February 16. Reports earlier indicated that it was supposed to be launched in January.
The price band for the public issue has been fixed at Rs 93-94 per share, which is 9.30-9.40 times the face value of equity shares. The offer will close on February 18.
The initial public offer is a complete offer for sale of 8,71,53,369 equity shares by the government. Of which, 5 lakh equity shares may be reserved for the company's employees.
The offer will give Rs 819.24 crore at higher price band to the government. Hence, the company will not get any money from this offer.
Investors can bid for a minimum 155 equity shares and in multiples of 155 equity shares thereafter.
RailTel, Mini Ratna (Category-I) central public sector enterprise, is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India.
It incorporated in September 2000, with the aim of modernising the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.
The company operated data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications
for customers including the Indian Railways.
This would be the sixth initial public offerings this year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.
ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are book running lead managers to the issue.
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