RailTel IPO opens for subscription today. Should you subscribe?

The three-day initial public offering (IPO) of the state-owned RailTel Corporation of India will open for subscription on Tuesday. The price band has been fixed at Rs 93-94 a share for the initial share-sale. 

The IPO is entirely an offer-for-sale through which the government will offload 87,153,369 equity shares, amounting to 27.16 per cent stake. At the upper end of the price band, the government would raise a little over Rs 819 crore.

Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional bidders.

Railtel shares were changing