On February 17, the second day of bidding RailTel has continued to see good subscription. It is subscribed 3.08 times so far with strong support from retail investors whose reserved portion has seen a 5.8 times subscription.
The Rs 819 crore IPO has received bids for 18.76 crore equity shares against offer size of over 6.11 crore shares, the subscription data available on the exchanges showed.
The portion set aside for non-institution investors was subscribed 87 per cent and that of employees 87 per cent, but the qualified institutional buyers are yet to put in their bids.
RailTel’s IPO is a complete offer for sale of over 8.71 crore equity shares by the Government of India (GoI). The issue was opened for subscription on February 16, with a price band of Rs 93-94 per share.
“At the upper price band, RailTel is available at a P/E of 21.4x on FY20 basis, which appears fully priced. Considering, increasing data usage, GoI’s digital India initiatives and further diversification plans of RailTel, we assign a subscribe rating for the issue,” Geojit Financial Services said.
RailTel Corporation of India is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. A neutral telecom infra provider is a third party who has little or no part in providing Internet service to the end-user but allows interconnection between multiple telecommunication carriers.
