Shares of RailTel Corporation of India extended rally for the third straight day on Tuesday, hitting a fresh high of Rs 174.75 on strong buying by institutional and domestic investors. The stock also got a boost after the company announced it won an order worth Rs 105.82 crore from the Ministry of Railways. The share of telecom infrastructure provider has surged 86 per cent over its issue price of Rs 94, while it has gained 67 per cent against its listing at Rs 104 on BSE on February 26.
On Tuesday, RailTel shares opened higher at Rs 161 against previous closing price of Rs 145.65 on the BSE. During the day's trade, the stock gained as much as 19.99 per cent to hit record high of Rs 174.75. The market cap of the company surged to Rs 5,608 crore.
On the volume front, 58.91 lakh shares changed hands over the counter as compared to average volume of 110.77 crore.
The stock of state-owned company made a tepid start on the bourses on February 26, listing at 11.28 per cent premium at Rs 104.60 on the BSE compared to the issue price of Rs 94.
On Friday, institutional investors acquired stake in the company through open market operation on its debut on the bourses. As per exchange data, Goldman Sachs India Fund purchased 3.71 million equity shares at Rs 113.57 apiece on the NSE. Nippon India Mutual Fund acquired 5 million shares at Rs 109 per share and Nippon India Mutual Fund-Multi Cap Fund bought 2 million shares at Rs 116.13 per share.
RailTel Corporation's Rs 819 crore initial public offer (IPO) was an offer for sale as this was part of the government's divestment programme. The RailTel IPO was subscribed 42.39 times as it 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 quota for retail investors was subscribed 16.78 times, 65.14 times in qualified institutional and 73.25 times in the non-institutional investor. The IPO opened for three days on February 15 and closed on February 18.
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