Vijay C Roy
Tribune News Service
Chandigarh, January 7
State-owned RailTel Corporation of India — 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 is likely to hit the capital market with a Rs 700- crore IPO in the current fiscal.
Through the IPO, the government would dilute its stake in the corporation. As per draft filed by the corporation with SEBI, the government will offload 8.66 crore shares.
“The exact timing of the IPO depends on market and our merchant bankers. We will enter the market when our bankers advise. Most probably, we will hit the capital market in the current financial year,” said Puneet Chawla, CMD, RailTel Corporation of India.
In December 2018, the Union Cabinet had approved the IPO of RailTel Corporation for diluting up to 25% government stake.
“As on November 30, 2020, the OFC network has presence reaching 58,742 route kilometres, encompassing towns and cities of the country, including the rural areas,” Chawla said.
He said the corporation has lined up Rs 105 crore in the next fiscal to strengthen its network and upgrade data centre. According to the data, the organisation has been profitable since FY 2007.