Government is looking forward to divesting up to 25 per cent in the RailTel Corporation and inviting bids from the merchant bankers to manage the Initial Public Offering (IPO).
The government is supposed to appoint up the three merchant bankers to manage the listing process and has invited bids from them by June 11.
The Railway PSU’s paid-up share capital stands at Rs 320.93 crore and Profit After Tax for 2017-18 was Rs 156 crore and as on March 31, 2018, RailTel Net worth stood at Rs 1,249 crore.
The Department of Investment and Public Asset Management (DIPAM) while inviting bids from merchant banker said, “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).”