RailTel IPO to open on Feb 16; price band fixed at Rs 93-94

• The offer will comprise up to 87,153,369 equity shares of face value of Rs 10 each

• 'The objects of the Offer are to carry out the disinvestment of 87,153,369 equity shares; and to achieve the benefits of listing the Equity Shares on the Stock Exchanges,' said RailTel

Mumbai: RailTel Corporation Of India Limited (RailTel) is set to open the offer period for its initial public offering (IPO) of equity shares on February 16, the company said in an official statement on Thursday. The IPO closes on February 18. The price band of the IPO has been fixed at Rs 93 to Rs 94 per equity share of face value of Rs 10 each. RailTel and the selling shareholders may, in consultation with the book running lead managers, consider participation by anchor investors, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, said the statement. The Anchor Investor Bidding Date shall be one Working Day prior to the bid opening date, ie, February 15.

The offer will comprise up to 87,153,369 equity shares of face value of Rs 10 each and the will be a complete offer for sale by the government, said RailTel. "The Company will not be directly receiving any proceeds from the Offer and all the Offer 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," it added. At the higher end of the price band, the government could raise upto Rs 819 crore. 

RailTel IPO: QIB portion of net offer shall be not more than 50%

The QIB portion of the net offer shall be not more than 50 percent; not less than 35 percent of the net offer shall be available for allocation to Retail Individual Bidders and not less than 15 percent of the net offer shall be available for allocation on a proportionate basis to non-institutional bidders. ICICI Securities Limited, IDBI Capital Markets & Securities Limited and SBI Capital Markets Limited are appointed as the BRLMs to the Offer.

RailTel

RailTel is a Mini Ratna (Category-I) PSU, wholly-owned by the government and under the administrative control of the Ministry of Railways. It is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fibre network, covering several towns and cities and rural areas of the country. 

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RailTel offers a diversified portfolio of ICT services and solutions including MPLS-VPN, leased lines services, TPaaS, e-Office services and data centre services, large network hardware system integration, software and digital services to enterprises, public sector banks, defense organisations and educational institutions, operated through data centres located in Gurugram, Haryana, Secunderabad and Telangana to host and collocate critical applications for customers, including the Indian Railways. RailTel has also been appointed by the Ministry of Railways for the implementation of the Hospital Management Information System. The company is also executing the government's e-Office Project Phase 3.

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