When is the Railtel IPO likely to hit the Indian market?
Answer
Answer
Government owned RailTel Corporation, the largest neutral telecom infrastructure services providers, filed its DRHP with SEBI for its proposed initial public offering. The IPO size is likely to be around Rs.700 crore.
RailTel is wholly owned by the Government of India and operates under the administrative control of the Ministry of Railways. Since it is a government divestment, it will be an offer for sale or OFS and there will be no new funds coming into the company.
The RailTel issue will comprise of an offer for sale of 8.66 crore shares plus an employee reserved portion for divestment. However, this could still be too small in the context of the overall target of Rs.210,000 crore from the divestment revenues overall in FY21.