RailTel Gains Over 29% on Issue Price Despite Bloodbath in Market
RailTel Corporation of India (RailTel) is the seventh listing in 2021after Indigo Paints, Indian Railways Finance Corporation, Nureca, Brookfield India REIT, Stove Kraft and Home First Finance Company.
RailTel Corporation of India (RailTel) got listed at Rs 109.00 per share, a premium of 15.96 percent on the National Stock Exchange (NSE), on Friday (26 February), to the issue price of Rs 94 per share. The scrip opened on a strong note of Rs 104.6 apiece on BSE.
During the intra-day trade, when compared with the issue price, the stock had touched a high of Rs 125.5 before settling at Rs 121.4, higher 29.15 percent and a gain of 16.06 percent, in comparison to the opening price.
At the NSE, the stock debuted at Rs 109, up 15.95 percent over the issue price and closed the counter at Rs 120.6, rising 10.64 percent over the opening price and 28.29 percent over the issue price. Intra-day, it touched a high of Rs 127.85.
Through its public issues, RailTel has garnered around Rs 819 which was a part of the divestment programme for FY21 and a complete offer for sale. In India, the company is one of the largest telecom infrastructure providers.
The initial public offer of RailTel Corporation of India Limited was subscribed 42.39 times on the final day of subscription in February last week. The Rs 819.24-crore offer 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 qualified institutional buyers (QIBs) category was subscribed 65.14 times, non-institutional investors 73.25 times, and retail individual investors (RIIs) 16.78 times. The public issue was of 8,71,53,369 equity shares and had a price range of Rs 93-94 per share.