RailTel IPO is going to open, on Tuesday, with a fixed price band of Rs.93-94 per share. The IPO will close on February 18.
RailTel provides broadband telecommunication, and they own the optical fibre network on Right of Way (ROW) on the railway tracks across India. KFin Technologies will manage the refund and share allocation of RailTel IPO. Choice Broking that has a subscribe rate on the issue said that RailTel enjoyed a stable performance financially throughout FY18-20. The company saw a net profit of Rs.141 crore in FY20 as compared to Rs.135 crore in FY19.
This IPO is an offer-for-sale entirely. The government plans to gain above Rs.819 crore by selling 27.16% stakes in this IPO. The issue is 50% reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.