RailTel Corporation files draft papers with Sebi for Rs 700-cr IPO

State-owned RailTel Corporation of India Ltdhas filed draft papers with capital markets regulator Sebi to raise Rs 700 crore through an initial share-sale.

The initial public offer (IPO) is entirely an offer-for-sale through which government will offload 8.66 crore equity shares, draft papers filed with Sebi showed.

According to merchant banking sources, the IPO is estimated to fetch Rs 700 crore.

The miniratna PSU is one of the largest neutral telecom infrastructure providers in the country, owning an optical fibre network on exclusive Right of Way (RoW) along the railway track.

The company provides broadband telecom and multimedia network across the country.

As on June 30, 2020, its optical fibre network covers over 55,000 kms and 5,677 railway stations across towns and cities in the country.

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

In December 2018, the Cabinet had approved IPO of RailTel Corporation for diluting up to 25 per cent government stake.