The shares of the state-owned company RailTel have shown strength in the stock market today. When the stock market crashed badly, RailTel’s shares were unaffected and continued to boom. At the end of trading, the stock closed up about 30 per cent. RailTel has been listed in the stock market today at a 15 per cent premium. The company had set an upper price band of Rs 94 for the shares in the IPO. While the stock is listed at Rs 109 on BSE. At the end of the business, it closed at a price of Rs 121.40. RailTel’s 819 crore IPO got a good response from investors.
Today’s share has been such a move
The price band for this IPO, which opens from February 16 to February 18, was fixed at Rs 93-94 per share. On February 26, the stock was listed at Rs 109 on the BSE. At the same time, it strengthened to Rs 125.50 during the business. It closed at Rs 121.40 on closing. The lot size of the offer was 155 equity shares. That is, at least 155 shares had to be bid. Whose price is Rs 14,570 in terms of the upper price band? A maximum of 13 lots could be bid for.
Keep shares for listing gains or long term
Nirali Shah, Head of Equity Research, SAMCO Securities, says 66 per cent of the company’s revenue comes from its telecom segment. While the remaining revenue was from the railway and other projects. RailTel can benefit from 5G growth in India.
At the same time, the company can also play an important role in the digital transformation of railways. Rail Tail is a debt-free company. The company has been in revenue growth singe digit from FY18 to FY20. The thing to note is that about 24 per cent of the company’s revenue comes from the top 3 customers. At the same time, it presents a highly regulated industry, which is a matter of risk. Overall, investors should invest money for listing gains.
Brokerage House Angel Broking says that RailTel is going to play an important role in the digital transmission of Indian Railways. RailTel’s margin and return ratio are better than other telecom players in India. The company’s financials are also strong and the record of giving dividend has been good. The company’s growth is looking better in the future. The stock price is also reasonable. Therefore, a good listing of RailTel IPO is expected. At the same time, it can also get better returns in the long term. Investors should subscribe to the IPO.
What does RailTel Corporation do?
Rail Tail Corporation of India is the information and communications technology (ICT) infra provider of the country. The company today is the leading telecom infrastructure provider of Deya. The company was started in the year 2000, it works under the Ministry of Railways. Its products and services include Telecom Network Services, Telecom Infrastructure Services, Data Center & Hosting Services and System Integration Services. The company’s objective is to earn additional income by providing control operations, the safety of trains and providing broadband and multi-media network facilities across the country.
RailTel’s total assets for the quarter ended September 30, 2020, we’re close to Rs 2482 crore, while revenue was around Rs 554 crore. At the same time, the company’s profit was about 46 crores. It has a 59,098 route kilometre optical fibre network that connects 5929 railway stations in the country by January 2021. RailTel’s shares will be listed on both BSE and NSE indices.
Subscribed more than 42 times
RailTel’s IPO received a great response from investors. The IPO has received bids about 43 times. The issue size for the IPO was 6,11,95,923 shares, while 2,59,41,39,520 bids were received for it. The reserve portion for qualified institutional investors was subscribed 65.14 times, while for non-institutional investors, the reserve portion was subscribed 73.25 times. At the same time, the reserved share for retail investors was subscribed 16.78 times. In the grey market, RailTel’s stock is seen at a 14 to 15 per cent premium.