RailTel, a “Mini Ratna (Category-I)” PSU, is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track, while IRFC is the dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas capital markets.
The report said that the government may look to divest about 15 per cent stake each in both of these companies by FY20.
“Government looking to garner around Rs 1,500 crore through IPOs of railway companies,” ETNow said.
The report came after online ticketing, tourism and the catering arm of railways, Indian Railway Catering and Tourism Corporation (IRCTC) on Wednesday said it is looking to raise up to Rs 645 crore through an IPO.
The price band of the public issue is fixed at Rs 315 to Rs 320 per equity share. The issue comprises an offer for sale of 2.01 crore shares of the face value of Rs 10.
Out of the total issue size, 1,60,000 equity shares are reserved for eligible employees. The issue will open on September 30 and closes on October 3.
