RailTel IPO to open on Feb 16; fixed price band at Rs 93-94
Investors can bid for a minimum lot of 155 equity shares and in multiples of 155 shares thereafter.
State-controlled telecom infrastructure providers RailTel Corporation of India Ltd’s initial public offering (IPO) will open for subscription on February 16. The company has fixed a price band of Rs 93-94 per equity share. The issue will close on February 18.
Investors can bid for a minimum lot of 155 equity shares and in multiples of 155 shares thereafter.
The public offer will comprise up to 87,153,369 equity shares of face value of Rs 10 each and the offer will be a complete offer for sale by the government. RailTel will not be directly receiving any proceeds from the offer and all the proceeds will be received by the selling shareholder.
The objects of the offer are to carry out the disinvestment of 87,153,369 equity shares held by the selling shareholder and to achieve the benefits of listing the equity shares on the stock exchanges. The government will raise around Rs 819 crore at upper price band through the public offer.
ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are appointed as the book running lead managers to the offer.
The company has fixed 50% quota for qualified institutional buyers and 35% for retail investors. The remaining portion will be available for non-institutional investors.
RailTel was incorporated in September 2000 with an objective to modernise the existing telecom system for train control, operation and safety.