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Govt targets Rs 300 cr from RailTel IPO by Sep

Press Trust of India  |  New Delhi 

The government is targeting to raise over Rs 300 crore through an IPO of and has asked the telecom infrastructure provider to speed up finalising its books of accounts for 2018-19.

The Cabinet in December last year approved initial public offering (IPO) of by diluting up to 25 per cent government stake.

"The plan is to launch the IPO by September. We are looking to raise about Rs 300 crore from the share sale," an said.

The is one of the largest neutral telecom infrastructure providers in the country owning a on exclusive Right of Way (RoW) along railway track.

The company provides telecom and across the country.

The further said the and Public Asset Management (DIPAM) will be appointing merchant bankers and legal advisers for IPO of RailTel soon.

"RailTel Corp has been asked to prepare their audited financial results by mid of June so that documents can be filed with regulatory authorities for approval," the added.

In December, the approved a plan to list six public sector companies, including RailTel Corp.

The government last month raised Rs 476 crore by selling 12 per cent stake in (RVNL) through an IPO.

In current fiscal, DIPAM is also planning to launch IPOs of 2 other rail CPSEs -- Indian Railway Catering and (IRCTC) and (IRFC).

The Cabinet in April 2017 approved listing of five railway companies--IRCON International, RITES, RVNL, IRFC, and Of these, IRCON and were listed in 2018-19 and RVNL in April 2019.

The government has budgeted to raise Rs 90,000 crore through PSU divestment in current fiscal, compared to Rs 84,972 crore raised in 2018-19.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 15:06 IST
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