RailTel Corporation of India debuts at 16% premium over issue price
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%.
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%.
The state-owned entity has raised around Rs 819 crore through the public issue which was subscribed 42.4 times during February 16-18. The qualified institutional buyers (QIBs) category was subscribed 65.14 times, non-institutional investors 73.25 times and retail individual investors (RIIs) 16.78 times. It was a complete offer for sale by the government, so all the money will go to the government.
RailTel Corporation is an information and communications technology (ICT) infrastructure provider. It provides services like telecom network services national long-distance services, ISP, telecom infrastructure services, managed data centre and hosting services & projects (system integrated services).
As of 31 January 2021, the company owns a pan-India optic fibre cable (OFC) network of about 59,098 route kilometres on exclusive Right of Way (RoW) along railway track and connects several towns & cities of the country and several rural areas. Its OFC network connects 5929 railway stations across towns and cities in India.
It was the seventh initial public offering this year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust and Nureca.