RailTel IPO subscribed 7.6 times on last day; price band fixed at Rs 93-94
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
BusinessToday.In | February 18, 2021 | Updated 12:19 IST
The shares are proposed to be listed on BSE, NSE on 26th February 2021
The initial public offering (IPO) of state-owned RailTel Corporation of India was subscribed 7.6 times on its third and last day of bidding. The Rs 820-crore public issue at a price band of Rs 93-94 per share was subscribed 12.09 times by retail investors, 3.18 times in QIB category and 3.29 times in the NII category.
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.
NEW DELHI: The Rs 820-crore RailTel Corporation initial public offer (IPO) was subscribed 42.4 times on the final day of the bidding process.
At 5:00 pm, the issue had received bids for 2,59,41,39,520 shares, which was 42.4 times the total issue size of 6,11,95,923 shares.
Till Day 2, the issue was subscribed 6.55 times with the retail quota getting bids for 10.55 times the quota limit. While the qualified institutional buyer quota was subscribed 2.97 times, the non-institutional investor category bade for 2.63 times the quota limit. The employee reservation category was subscribed 1.85 times.
The issue is an offer for sale for 87,153,369 equity shares in the price band of Rs 93-94. At the upper limit of this price band, the IPO is valued at 21.4 times PE on a FY20 trailing basis. Its enterprise value (EV) is four times the earnings before interest, tax, depreciation, and amortisation (Ebitda).
RailTel IPO: Issue subscribed 42 times on last day; QIB portion booked 65 times
RailTel Corporation IPO: The 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
BusinessToday.In | February 19, 2021 | Updated 00:39 IST
RailTel IPO subscribed over 42 times
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.
The initial public offering (IPO) of state-owned telecom infrastructure provider RailTel Corporation of India (RailTel) got bids 42 times more demand than the shares on offer. The offering for 61 million shares got bids for 2.6 billion. The institutional investor portion of the IPO was subscribed 65 times and the high-net-worth individual (HNI) portion was subscribed 73 times. The retail and employee categories were subscribed 17 times and 3.4 times, respectively. Given the high demand, the government is likely to price the Rs 820-crore IPO at Rs 94, the top-end of the price band. At that price, the company will be valued at around Rs 3,000 crore.
In FY20, the company had clocked net profit of Rs 140 crore on revenues of Rs 1,128 crore.