RailTel Corporation shares at 16% premium to gray market before IPO

Railtel Corporation is a Miniratna company. Currently, it is at a premium of Rs 10-15 from the upper price band of Rs 94 in the gray market. The premium of the company’s shares in the gray market has not changed for the second consecutive day.

RailTel Corporation will issue 8,71,53,369 equity shares in the IPO under Offer for Sale (OFS). The entire stake will be with the Government of India. According to the higher price band, the company will get Rs 819.24 crore from the issue. The government wants to take advantage of listing on the stock market by selling the company’s stake. The money raised from the issue will not go to the company but to the Government of India.

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RailTel is the largest neutral telecom infrastructure provider in the country. The company was formed in September 2000. It has a 59,098 route kilometer optical fiber network that connects 5929 railway stations in the country by January 2021. Apart from this, other functions like ICT Services and Solutions, Line Services Leasing, TPaas, E-Office Services and Data Center Services, Large Network Hardware System Integration, providing software and digital services to companies and public sector banks including MPLS-VPN. Does. That is, the overall portfolio of the company is diversified.

RailTel operates through data centers in Gurugram, Haryana, Secunderabad and Telangana. The Ministry of Railways has also entrusted the company with the responsibility of Hospital Management Information System and e-office project Phase 3 project.

The company’s largest customer is Indian Railways. This will be the sixth IPO of this year. IPOs of Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust have come so far this year.

ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are the book running lead managers to the issue.