RailTel IPO Subscription Status

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RailTel IPO Subscription Status

RailTel has raised Rs 244 crore from the anchor investors on 15th Feb 2021.  Foreign portfolio investors who participated in the anchor allotment included UK-based Aurigin Capital via its Aurigin Master Fund and Utilico Emerging Markets Trust, Reliance Capital managed Cohesion MK Best Ideas Sub-Trust, Singapore-based Integrated Core Strategies Asia, and Goldman Sachs India. Domestic investors included HDFC Life Insurance, Nippon Life MF, ICICI prudential among others.

The issue is open today from 16th Feb 2021 to 18th Feb 2021. There is no fresh issue and the Government is divesting 27.16% of its stake. RailTel IPO Subscription Status

The issue is oversubscribed by 42.39x on 18th Feb 2021 . The GMP of the IPO has fallen to Rs 15 per share on 18th Feb 2021 from Rs 35 per share on 16th Feb 2021.

RailTel Subscription Status {no. of times (x)}
Particulars Shares Offered 16th Feb 17th Feb 18th Feb
QIB 4,33,26,683 0.00 2.96 65.14
NII 1,29,98,006 0.75 2.63 73.25
Retail 3,03,28,680 4.99 10.54 16.79
Employees 5,00,000 0.81 1.85 3.36
Total 8,71,53,369 2.63 6.65 42.39

Important Dates of RailTel IPO

Important dates of RailTel IPO
Basis of Allotment Feb 23, 2021
Initiation of refunds Feb 24, 2021
Credit to Demat Account Feb 24, 2021
IPO listing date Feb 26, 2021

Strengths

  • Amongst the largest neutral telecom infrastructure providers in India with a pan-India optical fiber network.
  • A diversified portfolio of services and solutions.
  • Experience in executing projects of national importance with a robust pipeline of projects.
  • Debt-free company and consistent dividend-paying company.

Challenges

  • Dependent on and derive a substantial portion of revenues from PSU customers, the Indian Railways and other GoI entities as well as State Governments.

Recommendations of some of the brokerages:

Angel Broking- Subscribe

GEPL Capital- Subscribe

Choice Broking- Subscribe

 

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About CA Priyanka Choudhary Jain 122 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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