RailTel Corporation of India, a miniratna PSU, has acquired approval from capital markets regulator Securities and Exchange Board of India (Sebi) to boost Rs 700 crore by way of an preliminary public providing (IPO). The IPO will likely be an offer-for-sale by way of which the federal government will offload 8.66 crore fairness shares, in response to draft papers filed with Sebi. The opening and shutting dates of the first market providing haven’t been introduced to this point. The shares will likely be listed on each the benchmark indices.
The firm had filed its IPO papers in October and acquired the regulator’s remark on November 6. Any firm can launch an preliminary public providing, follow-on public supply and rights problem solely after the regulator’s remark.
The internet proceed from the IPO will likely be utilized by the corporate to hold out its disinvestment plan and to attain the advantages of fairness share itemizing on the inventory exchanges.
The Cabinet had accredited the IPO of RailTel Corporation manner again in December 2018, for diluting authorities stake of as much as 25 per cent.
Incorporated in 2000, RailTel Corporation is without doubt one of the largest impartial telecom infrastructure supplier within the nation. It is owned by the Government of India and administrated by the Ministry of Railways. RailTel owns an optical fibre community on unique Right of Way (RoW) alongside the railway monitor, and offers broadband telecom and multimedia networks throughout the nation.
As on June 30, 2020, the corporate’s optical fibre community coated greater than 55,000 kms and 5,677 railway stations throughout cities and cities within the nation.
ICICI Securities, IDBI Capital and SBI Capital Markets are service provider bankers of the general public problem, whereas KFintech is the registrar to the problem.