Stocks News

RailTel Corporation list at 16% premium over issue price on it’s debut

On Friday, RailTel Corporation of India made a decent market debut, as the scrip opened at Rs 109 on NSE.

This was at a 15.96 per cent premium over its issue price of Rs 94.

Moreover, the scrip debuted at Rs 104.60 on BSE and claimed up 11.28 per cent. However, the analysts had expected RailTel to list with 10-20 percent premium.

RailTel’s IPO was open for subscription from February 16 to February 18. Further, it saw qualified institutional buyers (QIBs) subscribing 65.14 times the quota limit.

Non-institutional investors bid 73.25 times whereas retail individual investors bid 16.78 times the quota limit.

It’s shares increased gains to trade at Rs 111.50 on the BSE, hiked up 18.62 percent  at  10:02 hours.

This includes volume amounting to 22.19 lakh equity shares.

However, the issue received 23,79,717 applications for the IPO, which was the second highest after IRFC.

In 2021, the company was the seventh listing after Indian Railway Finance Corporation and Indigo Paints.

In fact, the listing further comprises Home First Finance Company, Stove Kraft, Brookfield India REIT and Nureca before the company.

RailTel proffers leased line and VPN facilities besides rendering IP-1 services. It also provides strategic and critical network infrastructure to the government and certain state governments.

RailTel has city wide access network of 18,000 kilometers offering high capacity bandwidth of 800G at 87 locations in India.

It is an implementing partner for the Bharat Net project to create optical fibre cable-based broadband infrastructure.

The company has raised around Rs 819 crore through its public issue which was a complete offer for sale.

The share were quoting at Rs 113.55 on the NSE surging 20.8 percent with volume of over 2.48 crore shares.

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