RailTel Stocks in Grey Market: The IPO market may be at the listing premium of Rail Tel Corporation of India. The signs are coming from the gray market. In fact, in the gray market, the company’s stock is shown to be trading at a premium of 45 to 47 percent. The company has fixed the price band of Rs 93-94 per share for the IPO. While in the gray market, its premium increased by 47 percent from the upper price band. Let us know that the government-owned company is going to bring its IPO on February 16. This IPO will open on February 16 and can be invested in it till February 18. The government aims to raise Rs 819 crore through this IPO.
RailTel Corporation will issue 8,71,53,369 equity shares under the offer for sale under the IPO. Out of which 5 lakh equity shares are reserved for the employees of the company. The company will not get any amount from this offer, the entire amount will go to the government. ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are the book running lead managers to the issue.
List of IPOs listed this year
Talking about this year, 5 IPOs have been listed in the stock market. 5 of these are trading at an increase from their issue price. The listing of Indigo Paints was at a 75 per cent premium, while the listing gain was 109 per cent. Similarly, stove craft listings were 16 per cent and Antony West about 30 per cent. Home first finance is also trading at an increase from the issue price, while IRFC is declining. Similarly, in 13 IPOs listed last year, 3 got more than 100 percent listing gain.
About the company
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 & Hosting Services and System Integration Services. The company’s objective is to earn additional income by providing control operations, safety of trains and providing broadband and multi-media network facilities across the country.
RailTel’s total assets for the quarter ended September 30, 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.