Railtel Corporation Of India To Bring Rs 700 Crore IPO
Railtel Corporation of India to bring Rs 700 crore IPO, draft red herring prospectus filed with SEBI. RailTel Corporation of India files DRHP for Rs 700 crore RailTel Corporation of India on 29 September filed it’s Draft Red Herring Prospectus (DRHP) with capital market regulator SEBI for its initial public offering (IPO).
RailTel Corporation of India has filed its draft Red Herring Prospectus (DRHP) with capital market regulator SEBI for its initial public offering (IPO) on 29 September. RailTel Corporation is one of the largest neutral telecom infrastructure service providers. According to sources, this will help the company to raise about Rs 700 crore.
RailTel is a Category 1 Mini-Ratna Central Public Sector Enterprise, wholly owned by the Government of India under the administrative control of the Ministry of Railways. The purpose is to disinvest the government’s stake, so the company will not receive any income from the proposal.
In this issue, the Government of India proposes to sell 8,66,53,369 shares and employee reserve portion. Incorporated in 2000, RailTel provides telecommunications network and infrastructure services, managed data center and hosting services, and system integration services to government and non-government customers.
In addition to creating a nationwide broadband and multimedia network by laying optical fiber cables along the railway track, the company was incorporated with the objective of modernizing the existing telecommunications system for train control, operation and security. Its optic fiber network on June 30 covered 55,000 km and 5,677 railway stations in various cities of the country.
It has also been selected for the implementation of various mission-mode projects for the government, including the inclusion of the National Knowledge Network (NKN), Bharat Net, and optical fiber-based connectivity projects in Northeast India.
It also runs information and communication technology (ICT) projects. ICICI Securities, IDBI Capital, and SBI Capital Markets have been selected as book-running lead managers for this issue.
