NEW DELHI: RailTel Corporation of India's Rs 820 crore initial public offer (IPO), which has been seeing strong retail participation at bids totaling 11 times the issue size so far, closes for subscription on Thursday.
Surprisingly, the premium that unlisted shares of the company were enjoying in the grey market has plunged over the past few days. Analysts have largely been positive on the issue, as the Mini Ratna firm is debt-free and has been a consistent dividend payer. The RailTel IPO is seeking a fair valuation of 21.4 times PE on a FY20 trailing basis at the upper limit of Rs 93-94 price band, they said.