RailTel Corporation of India will finalise the allotment of its initial public offering (IPO) on Wednesday. The IPO of state-owned RailTel Corporation, which closed last week, was subscribed 42.42 times. The retail individual investor's segment was subscribed 16.78 times while qualified institutional buyers (QIBs) category 65.14 times and non-institutional investors 73.25 times. However, this was far less than 111.95 times for IRCTC and 67.24 times for Rites.
The Rs 819-crore IPO of telecom infrastructure provider received bids for 2,59,42,43,370 shares against 6,11,95,923 shares on offer. The IPO received retail bids of 16.78 times on its third and last day of bidding, more retail bids than 14.74 times in RITES and 14.95 times from IRCTC's IPO.
Those who had bid for the issue can check the subscription status on the online portal of KFin Technologies, the registrar to the issue. Applicants can also check their allotment status on the BSE website. RailTel shares are proposed to be listed on BSE and NSE on February 26.
Here are five easy steps to check your allotment status for RailTel IPO
On KFin Technologies
- Go to the online portal
-Click on the drop-down menu and select the company name as RailTel in the drop-down menu of the investor's centre section.
- Enter your Permanent Account Numbers (PAN) or application number or Client ID.
- After entering the given captcha code, investors can click on submit button and view their allotment status.
Applicants can also check their IPO allotment status on the BSE website
-Select Equity and then from the dropdown, select issue name- RailTel
-Enter your Permanent Account Numbers (PAN) or application number and click Search
Through the application status, investors can see the number of shares subscribed during the IPO, and the shares allotted on the page.
Reliance Securities, SMC Global, IIFL Wealth, TopShareBrokers.com, BP Wealth, Choice Equity Broking and Angel Broking have kept the positive outlook for the IPO, with Subscribe rating. On the other hand, Kotak Securities, ICICI Direct and Axis Capital assigned 'None' rating to the IPO. At the higher price band of Rs 94 per share, the IPO is valued at 21.4x EPS and 8.9x EBITDA for FY20.
The seventh issue of this year, which closed on February 18 was fully subscribed on the very first day of the bidding, on February 16.
The IPO of the state-owned enterprise was a complete offer for sale of 8,71,53,369 equity shares by the Government of India. The Ministry of Railways sold 27% stake through the issue. Market experts have suggested Rs 30-40 listing gains for short-term perspective in RailTel Corporation.
As per the company's DRHP, the company will not receive any proceeds from the offer and the net proceeds are to be used for carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the issue. Ahead of the IPO, RailTel had raised Rs 244 crore from 14 anchor investors.
Incorporated in September 2000, the public sector business unit is one of the largest neutral telecom infrastructure providers in India with PAN India optic fibre network. It is wholly-owned by the Government of India (GOI) and administrated by the Ministry of Railways.
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