RailTel Corp IPO ends with robust subscription

The issue received bids for 259.42 crore shares as against 6.11 crore shares on offer.

The initial public offer (IPO) of RailTel Corporation of India received bids for 259.42 crore shares as against 6.11 crore shares on offer, according to the stock exchange data. The issue was subscribed 42.39 times.

The non-institutional investors category was subscribed 73.25 times. The qualified institutional buyers (QIBs) category was subscribed 65.14 times. The retail individual investors category was subscribed 16.78 times.

The issue opened for bidding on 16 February 2021, and closed 18 February 2021. The price band for the IPO was set at Rs 93-94 per share.

The IPO comprised an offer for sale (OFS) of 8,71,53,369 equity shares by the Government of India. The company will not be directly receiving any proceeds from the offer and all the offer proceeds will be received by the selling shareholder.

Ahead of the IPO, the company on 15 February 2021 allotted 2.59 crore shares to anchor investors at Rs 94 per share, aggregating to Rs 243.99 crore.

The public sector undertaking posted a net profit of Rs 45.58 crore and total sales of Rs 537.40 crore in six month ended September 2020.

RailTel Corporation of India, a public sector undertaking under the Ministry of Railways (MoR), Government of India, is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in the country.

As of 31 January 2021, the company owns a pan-India optic fiber cable (OFC) network of about 59,098 route kilometers on exclusive Right of Way (RoW) along railway track and connects several towns & cities of the country and several rural areas. Its OFC network connects 5929 railway stations across towns and cities in India.

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