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Home >Markets >Stock Markets >RailTel to raise 819 cr via initial share sale

State-run RailTel Corp. of India Ltd will raise nearly 819 crore via initial public offering in which the government will sell 87.15 million shares, or a 27.16% stake. The three-day subscription for offer will open on Tuesday.

The price band for the issue has been fixed at 93-94 per share. At the upper price band, the firm will raise as much as 819.24 crore. According to the draft red herring prospectus, 43.32 million shares, or 50% of the shares on offer, will be reserved for qualified institutional buyers, 12.99 million for high networth individuals, 30.32 million for retail investors, and 500,000 for eligible employees.

ICICI Securities, IDBI Capital and SBI Capital Markets are the book running lead managers to the issue.

The information and communications technology infrastructure provider will not get any proceeds from the offer, as the government only seeks to divest its stake, presently at 100%.

For FY20, RailTail reported revenue of 1128.05 crore, up 12.43% from 1,003.27 crore a year-ago, while net profit was at 141.07 crore, up 4.21% from 135.36 crore a year ago.

RailTel will be the fifth railways company to go public. Others include IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd, and Indian Railway Catering and Tourism Corp. Ltd.

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