RailTel IPO Stock Market Listing: State-owned company RailTel has been listed in the stock market at a 12 per cent premium. The company had set an upper price band of Rs 94 for the shares in the IPO. While the stock is listed at Rs 105 on BSE. In the gray market, the company’s stock was trading at a premium, which was expected that the market would be listed with an increase. Currently, the stock is trading with an increase of Rs. Please tell that this 819 crore IPO of RailTel got good response from investors.
Subscribed more than 42 times
RailTel’s IPO received a great response from investors. The IPO has received bids about 43 times. The issue size for the IPO was 6,11,95,923 shares, while 2,59,41,39,520 bids were received for it. The reserve portion for qualified institutional investors was subscribed 65.14 times, while for non-institutional investors, the reserve portion was subscribed 73.25 times. At the same time, the reserve share for retail investors was subscribed 16.78 times. In the gray market, RailTel’s stock is seen at a 14 to 15 percent premium.
93-94 share price
The price band for this IPO, which opens from February 16 to February 18, was fixed at Rs 93-94 per share. The lot size of the IPO offer was 155 equity shares. That is, at least 155 shares had to be bid. Whose price is Rs 14,570 in terms of upper price band. A maximum of 13 lots could be bid for.
What does the company do
Rail Tail Corporation of India is the information and communications technology (ICT) infra provider of the country. The company today is the leading telecom infrastructure provider of Deya. The company was started in the year 2000, it works under the Ministry of Railways. Its products and services include telecom network services, telecom infrastructure services, data center and hosting services and system integration services. The company’s objective is to earn additional income by providing control operations, the safety of trains and providing broadband and multi-media network facilities across the country.
RailTel’s total assets for the quarter ended 30 September 2020 were close to Rs 2482 crore, while revenue was around Rs 554 crore. At the same time, the company’s profit was about 46 crores. It has a 59,098 route kilometer optical fiber network that connects 5929 railway stations in the country by January 2021. RailTel’s shares will be listed on both BSE and NSE indices.