RailTel IPO Worth Rs 800 Crore Launching On Feb 16: Price/Unit; Lot Size, How To Buy?

After a series of public offerings, the government-owned broadband and VPN service provider RailTel Corporation of India Ltd. is all set to launch its first-ever IPO on February 16. The public offering will be open for subscription till 18 February.

What Is The Price Band Of The IPO?

Initially, the Railtel IPO was expected to be launched in January itself. Now that the dates are finalized, the price band for the public issue is also fixed. It is Rs 93-94 for each share with the face value of Rs 10 or 9.3 to 9.4 times the nominal value.

The government is planning to sell its equity shares worth Rs 8.71 crore through this IPO.  Around 5 lakh equity shares among the total are reserved for the company’s employees. Through this, it is aiming to raise up to Rs 819 crore considering it gets higher value for the shares. Railtel will get no benefit from this offer.

How Much Can Be Bid?

The eligible investors will have to bid for 155 shares on the minimum side. This sums up to Rs 14,570 which will also be the minimum application amount for bidding.

Half of the equity shares or 43.32 crore shares worth Rs 407.3 crore have been reserved for Qualified Institutional Buyers (QIB). Another 30.3 crore equity shares are reserved for retail investors. This accounts for 35 per% of the total issue amounting to Rs 285 crore. The remaining 15% or Rs 12.9 crore shares worth Rs 122.2 crore are kept aside for the Non-institutional category.

Which Banks Are Involved In The IPO Process?

This IPO involves ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets as the book running lead managers. On the other hand, KFin Technologies Private Ltd. will be acting as the registrar to this issue.

Railtel is the sixth initial public offering of the year followed by Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust. 

RailTel Corporation of India Ltd. is a “Miniratna” enterprise of the Government of India and one of the largest neutral telecom infrastructure providers in the country. The company had gathered an annual profit of Rs 141 crore as of March 31, 2020. The shares of Railtel were seen traded at a unit price of Rs 126 in the grey market yesterday.