Centre targets Rs 300 cr from RailTel IPO

New Delhi: The government is targeting to raise over Rs 300 crore through an IPO of RailTel Corporation and has asked the telecom infrastructure provider to speed up finalising its books of accounts for 2018-19.

The Cabinet in December last year approved initial public offering (IPO) of RailTel Corporation India by diluting up to 25 per cent government stake.

"The plan is to launch the IPO by September. We are looking to raise about Rs 300 crore from the share sale," an official said.

The Miniratna PSU is one of the largest neutral telecom infrastructure providers in the country owning a optic fiber network on exclusive Right of Way (RoW) along railway track.

The company provides broadband telecom and multimedia network across the country.

The official further said the Department of Investment and Public Asset Management (DIPAM) will be appointing merchant bankers and legal advisers for IPO of RailTel soon.

"RailTel Corp has been asked to prepare their audited financial results by mid of June so that documents can be filed with regulatory authorities for approval," the official added.