This would be the second IPO of the state-owned enterprise after the one held in December last year when the Centre had diluted 25 percent of its stake in RailTel
New Delhi: The government is looking to raise Rs 300 crores via an IPO of RaiTel Corporation and has asked the public sector undertaking (PSU) to finalise its 2018-19 financials by mid of June. This would be the second IPO of the state-owned enterprise after the one held in December last year when the Centre had diluted 25 percent of its stake in RailTel.
"The plan is to launch the IPO by September. We are looking to raise about Rs 300 crore from the share sale," an official said. RailTel is one of the largest telecom infrastructure providers in India owning an optic fibre network on exclusive Right of Way (RoW) along the railway track. The company has installed high-speed WiFi connections across 1,600 railway stations in India.
"RailTel Corp has been asked to prepare their audited financial results by mid of June so that documents can be filed with regulatory authorities for approval," the source said. The Department of Investment and Public Asset Management (DIPAM) will be appointing merchant bankers and legal advisers for the IPO soon, they added.
The news comes as the government chases a disinvestment target of Rs 90,000 crores this year. In December last year, the Cabinet Committee on Economic Affairs had approved a plan to list six public sector companies, including RailTel Corporation. In the ongoing financial year, the DIPAM is also planning to launch the IPOs of two other PSUs — Indian Railway Catering and Tourism Corp (IRCTC) and Indian Railway Finance Corp (IRFC). Last month, the Centre had raised Rs 476 crore by selling 12 percent stake in Rail Vikas Nigam Ltd (RVNL) through an IPO.