IPO News

RailTel Corporation of India IPO to open on February 16

RailTel is a government-owned information and communications technology infrastructure provider and provides broadband telecom and multimedia network across the country.

As per reports, the Rs 819 crore initial public offering (IPO) of RailTel Corporation of India will open on February 16, 2021, and will be available for subscription till February 18, 2021.

The price band of RailTel issue has been between Rs 93-94, which is a premium of 9.3-9.4 times, on face value Rs 10 per share.

Moreover, Investors can bid for a minimum of 155 shares of the company and thereafter in multiples of 155 each.

According to the company’s DHRP, the IPO net proceeds are to be used towards carrying out the disinvestment plan.

Besides this, it also aims to achieve the benefits of equity share listing on the stock exchanges.

ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue.

The company has no listed peers in India that engage in a business similar to that of RailTel Corporation of India Ltd.

For the year ended on March 31, 2020, RailTel Corporation of India Ltd reported a profit of Rs 141 crore.

The previous IPO’s include Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.

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.

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