IPO News

RailTel share’s grey market premium surpasses 42%

RailTel Corporation’s offer for sale traded at a premium of Rs 40 in the grey market, implying a premium 42% over the upper end of price band.

Earlier on February 9, the price had traded at a premium of Rs 5-10.

However, the minimum market lot size for the IPO is 155 shares, where an individual investor can apply for up to 13 lots (2015 shares or Rs 189,410).

It’s grey market premium (GMP) rose to 42% ahead of the public sector undertaking’s initial public offer (IPO) set to open next week.

The net proceeds from RailTel Corporation of India’s Rs 819.24 crore initial public offer will be used towards the purpose of carrying out the disinvestment plan.

It also aims to achieve the benefits of equity share listing on the stock exchanges.

RailTel uses the latest technology like high dense wavelength division multiplexing (DWDM) and multi-protocol label switching (MPLS) network.

The company has data centres in Haryana, Gurugram, Secunderabad, and Telangana.

As on 30 June 2020, it has covered an optic fiber network over 55,000Km and 5677 railway station being one of the largest neutral telecom infrastructure providers in India.

The shares of the company are proposed to be listed on BSE, NSE.

The RailTel IPO market lot size is 155 shares. A retail-individual investor can apply for up to 13 lots (2015 shares or Rs.189,410).

The President of India, acting through the Ministry of Railways is the promoter of the company.

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