Mini Ratna Conferred (Category-I) Central Public Sector Enterprise, RailTel Corporation of India Limited
Mini Ratna Conferred (Category-I) Central Public Sector Enterprise, RailTel Corporation of India Limited to open its initial public offering on February 16, 2021; sets Price band of ₹ 93-₹ 94 per Equity Share
- Price Band of ₹ 93 – ₹ 94 per equity share of face value of Rs. 10 each (“Equity Share”)
- Bid/Offer Opening Date – Tuesday, February 16, 2021 and Bid/Offer Closing Date – Thursday, February 18, 2021
- Minimum Bid Lot is 155 Equity Shares and in multiples of 155 Equity Shares thereafter
- The Floor Price is 9.30 times the face value of the Equity Shares and the Cap Price is 9.40 times the face value of the Equity Shares.
Chennai, February 11, 2021: RailTel Corporation Of India Limited (“RailTel”), one of the largest neutral telecom infrastructure providers in the country (Source: CRISIL Report “Assessment of the telecom and telecom data services industry in India” dated September 2020) owning a Pan-India optic fiber network covering several towns & cities and rural areas of the country; will open the Bid/Offer period in relation to its initial public offering of Equity Sha res (the “Offer”/ “IPO”) on Tuesday, February 16, 2021 and close on Thursday, February 18, 2021. RailTel is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. The price band of the Offer has been fixed at Rs. 93 to Rs. 94 per Equity Share of face value of Rs. 10 each. The Company and the Selling Shareholders may, in consultation with the book running lead managers (the “BRLMs”), consider participation by Anchor Investors, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Monday, February 15, 2021.
The Offer will comprise up to 87,153,369 equity shares of face value of ₹10 each and the Offer will be a complete offer for sale by the Government of India. The Company will not be directly rec eiving any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholder. The objects of the Offer are to carry out the disinvestment of 87,153,369 Equity Shares held by the Selling Shareholder; and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
The QIB portion of the net offer shall be not more than 50%; not less than 35% of the net offer shall be available for allocation to Retail Individual Bidders and not less than 15% of the net offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders.
RailTel is one of the largest neutral telecom infrastructure providers in the country (Source: CRISIL Report “Assess ment of the telecom and telecom data services industry in India” dated September 2020) having a 59,098 route kilo meters of optical fiber cable network which has connected 5,929 railway stations across towns and cities in Indi a (as of January 31, 2021). RailTel offers a diversified portfolio of ICT services and solutions including MPLS-VPN, leased lines services, TPaaS, e-Office services and data center services, large network hardware system integration, software and digital services to enterprises, public sector banks, defense organisations and educ ational institutions; operated through data centers located in Gurugram, Haryana, Secunderabad and Telangana to host and collocate critical applications for customers including the Indian Railways. RailTel is also appointed by the Ministry of Railways for implementation of the Hospital Management Information System and also allo tted its e-Office Project Phase 3 project to RailTel.
ICICI Securities Limited, IDBI Capital Markets & Securities Limited and SBI Capital Markets Limited are appointed as the BRLMs to the Offer.
Disclaimers:
RailTel Corporation of India Limited is proposing, subject to, applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Equity Shares and has filed the red herring prospectus dated February 9, 2021 (“RHP”) with RoC on February 10, 2021. The RHP is available on the websites of SEBI, BSE and NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and is available on the website of the BRLMs at i.e., www.icicisecurities.com, www.idbicapital.com and www.sbicaps.com. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. Please note that investment in equity shares involves a high degree of risk and for details relating to the same, please see the section entitled “Risk Factors” beginning on page 25 of the RHP.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Reg ulation S and applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering in the United States.
About RailTel Corporation of India Limited
RailTel Corporation a “Mini Ratna (Category-I)” PSU is one of the largest neutral telecom infrastructure providers in the country (Source: CRISIL Report “Assessment of the telecom and telecom data services industry in India” dated September 2020) owning a Pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track. The OFC network covers several towns & cities of the country and several rural areas.
