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Last Day to Bid for RailTel Corporation of India IPO; Shares Subscribed 6.64 on 2nd Day

Image for representation

Image for representation

The agenda behind the initial public offer (IPO) is to use the net proceeds for carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges.

February 18, Thursday is the last day for subscribing to the initial public offering (IPO) of RailTel Corporation of India. The company launched its maiden Rs 819 crore public offer for subscription on February 16, 2021. At 5:00 pm, on the second day of the bidding process, the issue had received bids for 40,64,63,940 shares, which was 6.64 times the total issue size of 6,11,95,923 shares. While on the first day, the shares were subscribed 2.64 times. 2.63 times subscription was observed in the portion set aside for non-institutional investors and 1.85 times for employees. The qualified institutional buyers (QIB) saw 2.96 times bids against their reserved portion.

The agenda behind the initial public offer (IPO) is to use the net proceeds for carrying out the disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. RailTel Corporation IPO is the sixth public offering of the year 2021 after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust.

The price band of the shares are fixed at Rs 93-94 per share for the public issue and the market lot size of the RailTel IPO is 155 shares and a retail-individual investor can apply for up to 13 lots.

ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited are the lead managers while the registrar of the IPO is KFintech Private Limited.

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Investors can invest in the IPO by applying online using either UPI (offered by brokers who don't offer banking services) or ASBA (available in the net banking of your bank account) as payment method.

RailTel is a Mini Ratna (Category-I) completely owned by the Government of India (GOI) and is administered by the Ministry of Railways. Incorporated in September 2000, RailTel is an Information and Communication Technology (ICT) infrastructure provider and is also one of the largest neutral telecom infrastructure services providers in India.

first published:February 18, 2021, 12:57 IST