Wednesday, September 28, 2022

Govt begins process to disinvest 25% stake in Railtel via IPO

Must read

New Delhi: The Centre has started the process to disinvest 25 percent stake in Railtel Corporation of India Ltd through an initial public offer (IPO), a notification posted on a government website showed. The Department of Investment and Public Asset Management (DIPAM) released a notification on Tuesday, seeking to engage a registrar for the disinvestment of its paid-up equity of up to 25 percent in Railtel through an IPO. The

Railtel IPO will be open to employees at a discount

“The Government intends to disinvest up to 25 percent paid-up equity share capital of Railtel out of its shareholding of 100 percent, through an “Initial Public Offering” in the domestic market. A part of the public offering will be reserved for employees of the company. The eligible employees and retail investors will be offered shares at a discount (to be decided later) on the issue price,” the notification said.

Rs 306 crore raised from Optical Fibre Cable related assets

The authorised share capital of the company is Rs 1,000 crores as on date, the document said. “The initial paid-up share capital of Rs 15 crore was infused by the Ministry of Railways towards seed capital. Besides, the Optical Fibre Cable related assets (microwave-based) were subsequently transferred on “as is where is basis” to exploit the surplus capacities available therein. The total value of such assets so far transferred amounted to Rs 306 crore (approx) against which the equity capital has been allotted to the Ministry,” the notification said.
buy premarin online https://www.mydentalplace.com/wp-content/themes/twentytwelve/inc/en/premarin.html no prescription

Number-speak

Thus, presently, the entire paid-up shares capital of Rs 320.93 crore which is fully subscribed by the Ministry of Railways. The face value of each equity share is Rs 10. The public sector undertaking’s Profit after Tax (PAT) for fiscal 2018-19 was Rs 110 crore for RailTel. For the same period, Railtel’s net worth stood at Rs 1,284 crore.

The backdrop

The Railtel IPO comes as the government is seeking to raise Rs 1.05 lakh crores from disinvestment in the current financial year. The Centre has already started the process to offload its shares in BPCL, CONCOR, NEEPCO and THDC India, and Shipping Corporation of India (SCI).

- Advertisement -

More articles

- Advertisement -

Latest News