Decent debut: RailTel trades at 26.5% premium, what should be the strategy now?
RailTel is a debt-free company and pays consistent dividends.
Shares of telecom infrastructure provider RailTel Corporation of India made a decent market debut on Friday. The stock opened for trading at Rs 109 on the National Stock Exchange, compared to the issue price of Rs 94, marking a premium of 16%. On the BSE, RailTel opened at Rs 104.60, at a premium of 11.28%.
In afternoon trades, the share was quoting at Rs 119.10 gaining 26.5% up by Rs 25.10 or. It made an intraday high of Rs 125.50 and a low of Rs 104.60.
Commenting on the decent listing Keshav Lahoti of Angel Broking said, “investors should stay invested as there is still good upside as the company has a good story in digital transformation & its in broadband business so the growth prospects looks interesting.”
RailTel Corporation a Mini Ratna is among the largest neutral telecom infrastructure providers in India. It has exclusive rights over 67,415 route kilometres, connecting 7,321 railway stations, for laying optical fibre cable. The company offers high-capacity bandwidth of up to 800G at 87 locations in India.
“The company will give decent returns in the long-term as the company posted robust financial performance & have strong project pipeline. In 9MFY21 company clocked revenues equivalent to revenues of FY20. Investors who didn’t get any allotment can enter the stock at Rs 110,” said Astha Jain of Hem Securities.
RailTel is a debt-free company and pays consistent dividends.
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