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RailTel IPO: The price band for the public issue has been fixed at Rs 93-94 per share of the face value of Rs 10 each, which is 9.30-9.40 times the face value of equity shares.
RailTel Corporation of India Ltd’s initial public offering (IPO) is set to open for subscription next week on February 16 and will close on February 18, 2021. The state-owned information and communications technology infrastructure provider, RailTel’s issue can be applied through ASBA only. The price band for the public issue has been fixed at Rs 93-94 per share of the face value of Rs 10 each, which is 9.30-9.40 times the face value of equity shares. Also Read – LIC IPO: Now, LIC Insurance Policy Holders Will Have 10% Quota Reserved in the IPO
As per reports, RailTel’s public issue is entirely an offer for sale (OFS) of 8.71 crore equity shares by the government; the government could raise up to Rs 819 crore at the higher end of the price band. The company has also reserved up to 5 lakh equity shares for the RailTel Corporation of India Ltd’s employees.
Earlier in the day, RailTel Corporation of India Ltd’s shares were trading at a grey market premium of Rs 32 apiece, or 34 per cent over the IPO price. The shares were seen trading at Rs 126 apiece in the grey market today.
Investors can bid for the issue for a minimum 155 equity shares and in multiples of 155 equity shares thereafter, implying a minimum application amount of Rs 14,570. Up to 50 per cent of the net issue or 43.32 crore shares worth Rs 407.3 crore at a higher price band will be reserved for Qualified Institutional Buyers (QIB). The company has reserved not less than 35 per cent of the issue or 30.3 crore equity shares of Rs 285 crore for the retail investors and the remaining 15 per cent or 12.9 crore shares worth Rs 122.2 crore at a higher price band for Non-Institutional category.
The equity shares are proposed to be listed on both BSE and NSE. ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are book running lead managers to the issue, while the registrar to the offer is KFin Technologies Private Ltd.
RailTel Corporation of India Ltd is the seventh public issue so far this year after Indian Railway Finance Corporation (IRFC), Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust. Nureca Ltd’s IPO initial public offering was the sixth issue and it is set to open for subscription on February 15, 2021.