RailTel files draft papers for IPO with SEBI

State-run RailTel Corporation has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India for an initial public offer of up to 8.66 crore equity shares.

The IPO will be a complete offer for sale by the Centre. The Book Running Lead Managers (BRLM) for the IPO are ICICI Securities, IDBI Capital Market and Securities and SBI Capital Markets Ltd.

Industry insiders said the company is likely to raise Rs 700 crore through the IPO.

As per the prospectus, the company has established a consistent track record of financial performance and growth.

"We have been profitable since Fiscal 2007 and have consistently declared and paid dividends since Fiscal 2008," it said, adding that the company's net worth has been positive since incorporation and has been consistently growing.

RailTel's operations have been funded entirely by internal accruals since the fiscal year 2013 and it is a debt-free company, as per the prospectus.

RailTel Corporation is a "Mini Ratna (Category-I)" PSU and 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. - IANS