The government is contemplating to dispossess up to 25 percent stake in RailTel Corporation and is scouting for merchant bankers to control the listing process.
The government will appoint up to three merchant bankers to manage the listing process and has invited bids from them by June 11.
The paid up share capital of the Railway PSU stands at Rs 320.93 crore and Profit After Tax for 2017-18 was Rs 156 crore. As on March 31, 2018, RailTel Net worth stood at Rs 1,249 crore.
The Department of Investment and Public Asset Management (DIPAM) said while inviting bids from merchant bankers that The Government of India is considering to divest up to 25 percent paid-up equity share capital in RailTel out of its 100 percent in the domestic market through initial public offer (IPO)
The government last month raised Rs 476 crore by selling 12 percent stake in Rail Vikas Nigam Ltd (RVNL) through IPO.
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