RailTel share makes tepid market debut, lists at 16% premium to IPO issue price
RailTel Corporation share made a tepid debut market after its stock listed at a premium of 16% to the issue price today. The stock of state-owned telecom infrastructure provider listed at Rs 109 per share against the IPO issue price of Rs 94 on NSE.
On BSE, the shared opened at Rs 104.60, implying a premium of 11.27% over the issue price. Market cap of the firm stood at Rs 3,583 crore on NSE and Rs 3,623 crore on BSE. Total 2.48 crore shares of the state-owned firm changed hands on NSE .
The RailTel IPO was subscribed 42.39 times on the final day of subscription on February 18. The IPO received bids for 2,59,42,43,370 shares against 6,11,95,923 shares on offer, as per data available with the NSE.
The public offer of Mini-Ratna company RailTel Corporation of India opened for subscription on February 16 and closed on February 18. Price band for the issue was fixed at Rs 93-94 per share. RailTel aimed to raise Rs 819.24 crore through the seventh public issue this year.
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The issue was a complete offer for sale of 8,71,53,369 equity shares by the Government of India. The minimum market lot size for the IPO was 155 shares, where an individual investor could apply for up to 13 lots (2015 shares or Rs 189,410).
As per the company's DRHP, the net proceeds from RailTel Corporation of India's Rs 819.24 crore initial public offer will be used toward following purposes carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. The company will not receive any proceeds from the offer.
The President of India, acting through the Ministry of Railways is the promoter of the company. KFintech Private Limited was the registrar for the IPO. ICICI Securities, IDBI Capital, SBI Capital Markets were merchant bankers to the issue.
Incorporated in 2000, the Information and Communication Technology (ICT) infrastructure provider company has covered an optic fibre network over 55,000 Km and 5677 railway stations as on 30 June 2020 and has data centres in Haryana, Gurugram, Secunderabad, and Telangana.
Source: www.businesstoday.in
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