RailTel Company of India, a miniratna PSU, has acquired approval from capital markets regulator Securities and Change Board of India (Sebi) to boost Rs 700 crore by way of an preliminary public providing (IPO). The IPO shall 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 so far. The shares shall be listed on each the benchmark indices.
The corporate 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 situation solely after the regulator’s remark.
The web proceed from the IPO shall 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 Cupboard had accepted the IPO of RailTel Company means again in December 2018, for diluting authorities stake of as much as 25 per cent.
Integrated in 2000, RailTel Company is without doubt one of the largest impartial telecom infrastructure supplier within the nation. It’s owned by the Authorities of India and administrated by the Ministry of Railways. RailTel owns an optical fibre community on unique Proper of Method (RoW) alongside the railway observe, and gives 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 situation, whereas KFintech is the registrar to the problem.