RailTel IPO to open on February 16: Price band fixed at Rs 93-94. All you need to know


 

RailTel Corporation, a PSU that provides internet services for the Indian rail system along with other things, is scheduled to launch its initial public offer (IPO) next week. The government will sell 27 per cent in the company to raise Rs 819.24 crore.

For the RailTel IPO, investors can bid for a minimum 155 equity shares and in multiples of 155 equity shares thereafter.



The initial public offer is a complete offer for sale of 8,71,53,369 equity shares by the government. Of which, 5 lakh equity shares may be reserved for the company's employees.

The offer will give Rs 819.24 crore at higher price band to the government. Hence, the company will not get any money from this offer.

RailTel, Mini Ratna (Category-I) central public sector enterprise, is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India.

It incorporated in September 2000, with the aim of modernising the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.

The company operated data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications


This would be the sixth initial public offerings this year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.

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



All you need to know about the Railtel IPO 

When will the RailTel IPO open?
RailTel IPO will open for subscription on Tuesday, February 16, and will close on Thursday, February 18.

What is the price band of RailTel IPO?
The price band for RailTel IPO has been fixed at Rs 93-94.

What is the lot size for RailTel IPO?
Investors can subscribe to the initial public offering (IPO) by betting for a lot of 155 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots.

What is the issue size of RailTel IPO?
The government of India would be selling 87,153,369 shares through the issue.

What is the quota reserved for retail investors in RailTel IPO?
The quota for retail investors in RailTel IPO is fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent, while the NII quota is at 15 per cent.

Is there any employee quota in RailTel IPO?
Yes. There is an employee reservation of up to 5,00,000 shares.

When will details of RailTel IPO's anchor investors be disclosed?
The details of anchor investors of the IPO will be out either on the last day of this week or on Monday.

When will the basis of allotment be out?
The finalisation of the basis of allotment is likely by February 23 and the initialisation of refunds is likely by February 24. Meanwhile, credit of shares in demat accounts is likely by February 24.

What is the listing date of RailTel IPO?
RailTel listing is likely by February 26.

Where could we check RailTel IPO allotment?
Those who would bid for the issue can check the subscription status on: Kfin Technologies (https://evault.kfintech.com/ipostatus/), the online portal of Alankit Assignments, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.

Who are the leading book managers to the issue?
Book running lead managers to the IPO are ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets.

What does RailTel do?
RailTel is one of the largest neutral telecom infrastructure providers in India. It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India. The company was incorporated in September 2000 with the aim of modernising the existing telecom system for train control, operation 
and safety, and to generate additional revenues by creating nationwide broadband and multimedia networks by laying optical fiber cable by using the right of way along railway tracks.

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