NEW DELHI: The initial public offering (IPO) of RailTel Corporation of India opened for subscription on Tuesday and the issue was oversubscribed on the first day of bidding process.
State-owned RailTel has fixed a price band of Rs 93-94 a share for its initial share-sale. The three-day issue would close on February 18.
The mini-ratna PSU (public sector unit) is one of the largest neutral telecom infrastructure providers in the country owning an optic fiber network on exclusive Right of Way (RoW) along railway track.
The company provides broadband telecom and multimedia network across the country.
As of 1 pm, the issue had received bids for 7,76,92,355 shares, which was 126.96 per cent of the total issue size of 6,11,95,923 shares.
Here are key things to know about the RailTel IPO:
* RailTel had on Monday raised Rs 243.99 crore from 14 anchor investors.
* Foreign portfolio investors who participated in the anchor allotment included UK-based Aurigin Capital via its Aurigin Master Fund and Utilico Emerging Markets Trust, Reliance Capital managed Cohesion MK Best Ideas Sub-Trust, Singapore-based Integrated Core Strategies Asia and Goldman Sachs India.
* Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, 15 per cent for non-institutional bidders.
* KFin Technologies Private Limited is the registrar of the RailTel IPO.
* ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue.
* In December 2018, the cabinet had approved IPO of RailTel Corporation by diluting up to 25 per cent government stake.
(With inputs from agencies)