RailTel IPO: Issue on February 16, know 10 big things #RailTelIPO #RailTel

Amid the stock market boom, another IPO has been announced. After IRFC, RailTel Corporation, another company associated with Indian Railways, is now coming with its public issue. This will be the sixth IPO of 2021 after IRFC, Indigo Paints, Home First Finance Company, Stove Craft and Brookfield REIT. Let’s know all the important things related to this issue in 10 points –

• RailTel Information and Communication Technology (ICT) infrastructure provider is a Miniratna company. The company is currently fully owned by the central government. Since its inception in 2000, the company has been continuously modernizing the telecom system for train related services. The company is also involved in laying optical fiber only networks using its Right of Way (RoW) on railway tracks.

• RailTel IPO will open on February 16 and will be available to investors till February 18. Allotment of shares is expected by February 23, after which the listing of stocks in NSE and BSE can be done on February 26.

• In RailTel IPO, the government will sell a total of 8,71,53,369 crore shares through Offer for Sale (OFS). The total issue size of RailTel IPO at the upper price band is Rs 819 crore 24 lakh crore.

• The price band of ₹ 93 – ₹ 94 has been fixed for the sale of shares in this public issue. Retail investors can show interest in shares for at least 155 or its multiple. For such a lot at the upper price band, the investor will have to invest at least ₹ 14,570.

• A 50% stake in RailTel IPO will be reserved for qualified institutional buyers, 35% for retail investors, while the remaining 15% will be for non-institutional buyers. A total of 5 lakh shares are reserved for RailTel Employees.

• At the end of September half of FY 2021, the company’s total income was 553 crores while net profit was 45 crores. According to the company, there is no debt on its balance sheet.

• The amount raised from the IPO will not remain with the company due to the sale of shares through OFS of the government. This public issue is part of the government’s disinvestment strategy.

• The IPO will open for anchor investors on 15 February.

• Prior to the IPO, the premium of RailTel’s share in the gray market is 40-45 rupees.

• ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are in the role of lead managers for RailTel IPO.