RailTel Corporation of India is all set to launch its initial public offer for subscription on February 16, 2021. The main motive behind the offering 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. 8,71,53,369 equity shares will be offered by the company which will be aggregating up to Rs 819.24 Crores. Also, 5 lakh out of the equity shares in the offer will be reserved for the employees of the company.
RailTel Corporation IPO will be the seventh public offering of the year 2021. The previous IPO’s include Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India Real Estate Trust and Nureca Ltd.
Here are the details which one needs to know before subscribing to the shares:
Date of the IPO: The IPO will start on February 16, 2021, and will close on February 18, 2021. The shares of the company are set to be listed on the BSE and NSE on February 26.
Price band: The price band has been fixed at Rs 93-94 per share.
IPO lot size: The market lot size of the RailTel IPO is 155 shares and a retail-individual investor can apply for up to 13 lots. 35 percent quota has been fixed for the retail investors while for the qualified institutional buyers, it is 50 percent and 15 percent for the non-Institutional Investors segment.
Lead managers: ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited are the lead managers of the IPO.
Registrar: KFintech Private Limited is the registrar of the IPO.
How to apply: Investors can apply for the IPO using either UPI or ASBA as payment method. ASBA IPO application will be available in the net banking of your bank account while the UPI IPO application will be offered by brokers who don’t offer banking services.
RailTel is a Mini Ratna (Category-I),incorporated in September 2000, and is completely owned by the Government of India (GOI). The company is administered by the Ministry of Railways. RailTel is one of the largest neutral telecom infrastructure services providers in India. The cabinet had approved the IPO of RailTel Corporation of India by diluting up to 25 percent government stake in December 2018.