State-owned RailTel Corporation of India Ltd has filed draft papers with capital markets regulator Sebi to raise Rs 700 crore through an initial share-sale. The initial public offer (IPO) is entirely an offer-for-sale through which government will offload 8.66 crore equity shares, draft papers filed with Sebi showed.

Share Market Live

NSE

The proposed IPO comprises an offer for sale (OFS) by the government. ICICI Securities, IDBI Capital, SBI Capital Markets Ltd are merchant bankers to the issue.

In December 2018, the Cabinet had approved IPO of RailTel Corporation for diluting up to 25 per cent government stake.

.@RailTel Corp submits draft red herring prospectus (DRHP) for its initial public offering, @YashJain88 reports. Net Offer will comprise of 8.66 cr shares. The issue is a complete OFS by govt. As per market sources, the IPO size is approximately Rs 700 cr pic.twitter.com/3DvEAh8XHZ

— CNBC-TV18 (@CNBCTV18Live) October 2, 2020

RailTel Corporation of India Ltd. is a "Miniratna" enterprise of the Government of India focusing on providing broadband and VPN services. It is one of the largest neutral telecom infrastructure providers in the country, owning an optical fibre network on exclusive Right of Way (RoW) along the railway track. It has covered over 55,000 kms and 5,677 railway stations across the country.

(With inputs from agency)

First Published:Oct 2, 2020 2:59 PM IST