Soon another bumper earning opportunity will open in the stock market. The IPO of another big company of Indian Railways is ready to knock in the market. State-owned RailTel has been allowed to launch an IPO from the capital market regulator SEBI. After the bumper listing of the railway subsidiary IRCTC, the expectation is that this railway company will also take a banged entry. The company is planning to raise Rs 700 crore from the market through an IPO.
According to SEBI, the entire issue will be based on offer-for-sale, in which the central government is about to sell 8.66 crore shares. Public sector RailTel Corporation of India Ltd can raise Rs 700 crore from the market. According to information received from SEBI, the company received ‘Observation’ on 6 November. Obtaining ‘Observation’ is mandatory for any company to present an IPO, FPO or rights issue.
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Railtel Corporation Of India IPO Detail:
|IPO Open:||Updated Soon|
|IPO Close:||Updated Soon|
|IPO Size:||₹700 Crore|
|Face Value:||Updated Soon|
|Price Band:||Updated Soon|
|Listing on:||Updated Soon|
|Retail Portion:||Updates Soon|
|Equity:||Shares ( As Per News)|
Railtel is a Miniratna Company
Railtel is a category one Miniratna government company. The PSU company submitted a draft red herring prospectus (DRHP) on 29 September. The company provides telecom networks and infra services. The company has separate system integrated services.It has exclusive rights on the optical fiber network laid along the railway line. Its optic fiber network is spread over 55000 km by 30 June 2020. It provides service at 5,677 railway stations. The company has helped launch an optic fiber-based connectivity project at the National Knowledge Network (NKN), Northeast.
Merchant Bankers of Railtel IPO
For the IPO, the company has made ICICI Securities, IDBI Capital, SBI Capital Markets Limited a merchant banker. The Union Cabinet had approved the decision to sell up to 25 percent stake in RailTel in December 2018. Since 2013, the company is being funded internally. There is no debt on it either. The compounded annual growth rate increased by 7.47% in FY18-20.