RailTel raises 243.99 crore from 14 anchor investors

RailTel Corporation of India, one of the largest neutral telecom infrastructure providers in the country has managed to raise Rs. 243.99 crore from 14 anchor investors a day prior to its issue opening. The company informed the bourses that it has allocated 2,59,57,446 shares at Rs 94 per share on February 15, to the anchor investors.

Five foreign portfolio investors who participated in the anchor were UK based, Aurigin Capital via its Aurigin Master Fund and Utilico Emerging Markets Trust, Reliance Capital managed, Cohesion MK Best Ideas Sub-Trust, Singapore based, Integrated Core Strategies Asia and Goldman Sachs India.

Amongst the domestic investors, HDFC Life Insurance picked up the largest allocation of 14.34% for Rs 34.99 crore, followed by Nippon Life MF who picked up 12.29% amounting to Rs 29.99 crore. Other domestic institutions who were allocated shares were ICICI Prudential MF across four schemes; HDFC MF across 4 schemes; IIFL Mutual Fund via its Focused Equity Fund, Tata Mutual Fund via its Digital India Fund and Edelweiss Mutual Fund across 4 schemes. The AIF who participated in the anchor bidding was Edelweiss AIF via its Crossover Opportunities Fund Series II

Key brokerage houses like Angel Broking, Asit C Mehta, Reliance Securities, BP Equities, Choice Broking, Hem Securities have recommended investing in the public issue citing the strategic relationship and role the company will play in the digital transformation of the Indian Railways, its return ratios being better compared to other telecom players in India, industry dynamics, ability to monetize its existing assets, strong and stable financial position and long term prospects

ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are appointed as the BRLMs to the Offer.