RailTel Corporation of India, a miniratna PSU, has obtained approval from capital markets regulator Securities and Exchange Board of India (Sebi) to lift Rs 700 crore via an preliminary public providing (IPO). The IPO will probably be an offer-for-sale via which the federal government will offload 8.66 crore fairness shares, in line with draft papers filed with Sebi. The opening and shutting dates of the first market providing haven’t been introduced to date. The shares will probably be listed on each the benchmark indices.
The firm had filed its IPO papers in October and obtained the regulator’s commentary on November 6. Any firm can launch an preliminary public providing, follow-on public provide and rights difficulty solely after the regulator’s commentary.
The web proceed from the IPO will probably be utilized by the corporate to hold out its disinvestment plan and to realize the advantages of fairness share itemizing on the inventory exchanges.
The Cabinet had authorized 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 among 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 observe, and supplies broadband telecom and multimedia networks throughout the nation.
As on June 30, 2020, the corporate’s optical fibre community lined 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 difficulty, whereas KFintech is the registrar to the problem.