The Government of India, in its bid to reach the divestment target of this year, is planning to roll out an IPO of one of its Public Sector Units - RailTel Limited. Continue reading to learn more about the upcoming RailTel IPO.
About the company
Established in the year 2000, RailTel Limited is a public sector undertaking that comes directly under the purview of the Ministry of Railways. The company’s main objective is to provide Information and Communication Technology (ICT) infrastructure. In just a span of 2 decades, RailTel has managed to quickly rise up to become one of the largest telecom infrastructure providers in the country. The role of RailTel Limited towards modernization of the telecom infrastructure and the entire industry as a whole cannot be discounted.
The company has 4 data centers across the country in Telangana, Secunderabad, Haryana, and Gurugram and employs latest technologies like High Dense Wavelength Division Multiplexing (DWDM) and Multi-Protocol Label Switching (MPLS) network systems. As of June 30, 2020, the company had laid an extensive optic fiber network spanning over 55,000 kilometers and 5,677 railway stations.
In the previous two financial years alone, the company has managed to grow its revenue from Rs. 1,038.26 crores to around Rs. 1,166 crores. In addition to a solid revenue growth, the company also enjoyed an increase in its net profit from Rs. 135.35 crores to around Rs. 141 crores.
RailTel IPO news
Now that you’re aware of the company, let’s take a look at some of the important RailTel IPO details such as the RailTel IPO date and the RailTel share price, among others.
RailTel IPO date
The date of opening of this new RailTel IPO has been announced as February 16, 2021. After staying open for two more days, the IPO is expected to close on February 18, 2021.
RailTel IPO issue size
Around 87,153,369 equity shares of the company are all set to be issued to the public via this public issue by RailTel Limited. This issue size is exclusive of a special employee reservation portion, which has been notified as 5 lakh shares.
The total value of the issue size is Rs. 700 crores. Since the entire upcoming RailTel IPO is the government offloading its stake through an Offer for Sale (OFS), there’s no fresh issue of shares.
RailTel IPO price
The RailTel stock price for this upcoming IPO issue has been notified as Rs. 93 to Rs. 94 per equity share. Considering the fact that the RailTel share price is just Rs. 10 at face value, the RailTel stock price for this upcoming IPO carries a significant premium.
RailTel IPO listing
The latest RailTel IPO news is that the shares of the company are proposed to be listed on both the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE).
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