RailTel Corporation of India, state-owned telecom infrastructure provider, saw its initial public offering subscribed 42.39 times on the final day of subscription on Thursday. The Rs 819.24 crore IPO 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 data showed that portion reserved for the qualified institutional buyers (QIBs) was subscribed 65.14 times, non institutional investors by 73.25 times and retail individual investors (RIIs) by 16.78 times.
Commenting on the development, Puneet Chawla, chairman and managing director, RailTel Corporation of India said, "It is heartening to see the overwhelming response from investors across all categories."
RailTel IPO, the seventh issue this year, is a complete offer for sale of 8,71,53,369 equity shares by the government and had a price range of Rs 93-94 per share. 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). The public issue was fully subscribed on the very first day of the bidding.
According to the documents filed with SEBI, the company will not receive any proceeds from the offer and the net proceeds are to be used for carrying out disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. The President of India, acting through the Ministry of Railways, is the promoter of the company. The Ministry of Railways will plan to sell 27% stake through the issue.
Market experts have suggested Rs 30-40 listing gains for short-term perspective in RailTel Corporation.
KFintech Private Limited is the registrar for the IPO, while ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue. The shares are proposed to be listed on BSE, NSE on 26th February 2021.