RailTel's IPO may come in January, government will sell 25% stake.

RailTel's IPO may come in January, government will sell 25% stake.

The central government wants to sell its 25 per cent stake in Railtel Corporation. For this, she will bring an IPO. The government has also started searching for advertising agencies.

The Department of Disinvestment has said, "The Department of Public Asset Management and Disinvestment (DIPAM) seeks the services of reputed advertising agencies. Such agencies should have experience and specialized understanding of offering IPOs. Only such agency will be tasked with RailTel's IPO . "

The government may offer this IPO by mid-January 2020. The government will submit the proposal in this regard by 28 November. The cost of advertising agencies will have to be borne by DIPAM and Book Running Lead Managers (BRLM).

RailTel is a government company. He has the status of Miniratna. It provides neutral telecom infrastructure. It is the only company in the country that has the exclusive right (RoW) to lay optic fiber network along railway tracks. The company provides broadband and multimedia network service across the country.

In December, the Cabinet Committee on Economic Affairs cleared the disinvestment of six government companies. RailTel was also involved in this. This year, the government has raised Rs 466 crore from 12.12 percent disinvestment of Rail Vikas Nigam (RVNL).

The government recently launched an IPO of Rs 645 crore of IRCTC. This IPO received a tremendous process on the primary market. This was the second government company to be listed in this financial year.

Also Read : Bumper Listing of IRCTC in Stock Market