RailTel Corporation IPO: The IPO of this company with the government’s information and communication technology (ICT) infrastructure is open today i.e. February 16 and will close on February 18. In this, the government is selling its 27 per cent stake or 87 million shares. However, the money raised from this issue will not be received by the company but will be taken by the government. RailTel Corporation is the government’s mini Ratna company.
What should investors do?
Looking at the debt-free balance sheet of the company, every brokerage house has advised investing in this issue. The company has a good valuation and consistently pays dividends. With this, RailTel can play an important role in the digital transformation of Indian Railways.
66 per cent of RailTel’s revenue comes from the telecom sector. While the rest of the revenue comes from railways and other projects.
Nirali Shah, equity head, Samco Securities, said, “If RailTel does the job properly, it will benefit from the 5G growth in the country as the company can get the job of laying fiber. Also RailTel’s role in the digital transformation of railways Even better.
Important things related to RailTel’s IPO
Its issue price band is Rs 93-94 per share. It has a lot of 155 shares. Whereas any retail investor can bid for a maximum of 13 lots.
RailTel has an issue size of 87,153,369 shares. The government is set to sell so many shares in the IPO.
Retail investors hold a 35 per cent stake in the issue. The quota for QIB is 50 percent. While the quota for NII is 15 percent. The quota has also been reserved for the employees of the company. The government has reserved 5 lakh shares for the employees.
When will the allotment
RailTel shares may be allotted on 23 February. Those who will not get shares, their money will be returned on February 24. Shares in the demat account will also appear on February 24.
When will be the listing
RailTel shares may be listed on February 26. Its book running lead managers are ICICI Securities, IDBI Capital Market Securities and SBI Capital Markets.