As part of the government’s disinvestment programme, public sector player RailTel is lining up an INR 700-crore initial public offer (IPO) early next year, valuing the company at around INR 3000 crore.
December 7, 2020
Public sector player RailTel is lining up a INR 700 crore initial public offer (IPO) early next year, valuing the company at around INR 3000 crore. This is a part of the government’s disinvestment programme.
The IPO has been in the works for over a year but the building blocks are still being put in place, with the required number of independent directors still not on board, given the government slow appointment process.
As reported in a leading daily, Mr. Puneet Chawla, CMD, RailTel Corporation of India Ltd. stated that the Covid-related restrictions had helped boost the company’s business, with the prospects looking up in the coming months. The miniratna PSU 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 tracks. It also provides broadband telecom and multimedia networks across the country.
Mr. Chawla further stated that Railwire, which is a broadband service, has grown by around two-and-a half times in the last eight-nine months. He further added that the company will continue to grow exponentially. Similarly, it has dedicated leased line service which has been provided to various institutions, including 722 universities and colleges. Now this service will have to be provided to other institutions as they require this. The company is expecting a tremendous demand and we will be upgrading our network capacity.
