Signals, Powered By EquityPandit
The IPO of RailTel Corporation of India will close for retail subscriptions on Thursday, February 18. As per the NSE data, the IPO was subscribed 6.64 times on the second day of subscription on Wednesday. The Rs 819.24-crore offer received bids for 40,64,63,940 shares against 6,11,95,923 shares on offer. The public issue is of 8,71,53,369 equity shares and in a price range of Rs 93-94 per share. A lot will cost Rs 14,570 and comprise 155 shares.
The company has raised Rs 244 crore from 14 anchor investors. The offer is being managed by ICICI Securities Ltd, IDBI Capital Markets & Securities Ltd, and SBI Capital Markets Ltd.
As per NSE data, the qualified institutional buyers (QIBs) portion was subscribed 2.96 times, non-institutional investors 2.63 times, and retail individual investors(RIIs) 10.55 times. The IPO is seeing strong retail participation at bids. Investors are expecting a good listing gain. However, the premium in the grey market for the shares of the unlisted company has plunged.
A share of RailTel was commanding a premium of Rs 12-14 on Thursday. This is far below the Rs 47 GMP it was enjoying a few days ago. The grey market premium still suggests at least a 13-15 per cent gain at the time of listing. Meanwhile, the RailTel IPO allotment will be done on February 23 and shares will be credited to demat account on February 24. Listing of RailTel shares on NSE and BSE will take place on February 26. RailTel is a telecom company. It is a debt-free company. The mini-ratna PSU provides broadband and VPN services.
RailTel IPO Grey Market Premium Plunges
