The government of India will be divesting 25 percent stake in RailTel Corporation and will be appointing three merchant bankers to manage its initial public offering (IPO) process. Bids from bankers have been invited from 11 June.
The railway PSU's (public sector unit) paid-up share capital stands at Rs 320.93 crore and its Profit After Tax (PAT) for the financial year 2017-18 was Rs 156 crore. As on 31 March 2018, RailTel's networth stood at Rs 1,249 crore.
"The Government of India is considering to divest up to 25 per cent paid up equity share capital in RailTel out of its 100 per cent in the domestic market through initial public offer (IPO)," the Department of Investment and Public Asset Management (DIPAM) said inviting bids from merchant bankers.
RailTel Corp is a Miniratna PSU, and one of the largest neutral telecom infrastructure providers in the country owning an optic fiber network on exclusive Right of Way (RoW) along railway track. The company provides broadband telecom and multimedia network across the country.
In December, the Cabinet Committee on Economic Affairs approved a plan to list six public sector companies, including RailTel Corp.