RailTel Corp IPO to open Tuesday, to raise nearly ₹820 crore1 min read . Updated: 11 Feb 2021, 10:53 AM IST
- The price band for the issue has been fixed at ₹93-94 a share. On upper band price, the firm will raise as much as ₹819.24 crore
State-run RailTel Corp of India Ltd will issue nearly 87.15 million shares to raise over ₹800 crore via an initial public offering. The subscription for offer will open on Tuesday and close on Thursday.
The price band for the issue has been fixed at ₹93-94 a share. On upper band price, the firm will raise as much as ₹819.24 crore.
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ICICI Securities, IDBI Capital and SBI Capital Markets are appointed as book running lead managers to the issue.
As the objective of the issue is to divest government's stake, the company will not get any proceeds from the offer. Currently, the government holds 100% stake in the company.
For the fiscal 2021, the government has set an ambitious ₹2.1 trillion goal for the sale of government holding in state-run companies.
The aggressive disinvestment target is also the basis for the government’s hope that it will be able to contain its fiscal deficit at 3.5% of gross domestic product (GDP) in FY21. It had to let its fiscal deficit slip from 3.3% estimated in the budget presented last July to 3.8% of the GDP in the revised estimate presented on 1 February.
For fiscal 2020, the company reported a revenue of ₹1128.05 crore, up 12.43% from ₹1,003.27 crore a year ago. Net profit for the period stood at ₹141.07 crore, up 4.21% from ₹135.36 crore a year ago.
RailTel is an information and communications technology infrastructure provider and one of the largest neutral telecom infrastructure providers in India. As of June 30, 2020, its optic fiber network covered over 55,000 route kilometers and 5,677 railway stations across towns and cities in India.
As of June 2020, the company had exclusive right of way along 67,415 route kilometers connecting 7,321 railway stations for laying optical fiber cable. The company has over 55,000 route kilometers of optical fiber cablenetwork and connected 5,677 railway stations across towns and cities in India.