RailTel Corporation of India is all set to launch its maiden public offer for subscription on February 16. The objective behind the initial public offer (IPO) is to use the net proceeds for carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. The offering will be of 87,153,369 equity shares which will be aggregating up to Rs 819.24 crores. However, out of the equity shares in offer, 5 lakh may be reserved for the company's employees.
RailTel Corporation IPO will be the sixth public offering of the year 2021. The previous IPO's include Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.
Here are the details one needs to know before biding into the IPO:
Date of the IPO: The IPO will be for three days starting from February 16 to February 18.
Price band: The price band has been fixed at Rs 93-94 per share for the public issue.
IPO lot size: The market lot size of the RailTel IPO is of 155 shares and a retail-individual investor can apply for up to 13 lots.Lead managers: The lead managers of IPO include ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited.
Registrar: The registrar of the IPO is KFintech Private Limited.
How to apply: Investors who are willing to invest in the IPO can apply for the same online using either UPI or ASBA as payment method. ASBA IPO application will be available in the net banking of your bank account whereas UPI IPO application will be offered by brokers who don't offer banking services.
Incorporated in September 2000, RailTel is a Mini Ratna (Category-I) owned by the Government of India (GOI) and is administered by the Ministry of Railways. The company is an Information and Communication Technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure services providers in India. The President of India is the promoter of the company and acts through the Ministry of Railways.