The RailTel IPO share Allocation, which closed last week, is likely to be finalised on February 23, according to brokerages, while listing may happen on February 26. KFin Technologies Private Limited is the registrar of RailTel IPO and will manage share allocation and refund. Investors can check the status of their application on the website of KFin Technologies or BSE.
The IPO of telecom infrastructure provider RailTel, which was open between February 16 and February 18, was subscribed over 42 times. The Rs819 crore offer received bids for 2,59,42,43,370 shares against 6,11,95,923 shares on offer. The retail individual investors segment was subscribed 16.78 times while qualified institutional buyers (QIBs) category 65.14 times and non-institutional investors 73.25 times.
RailTel IPO had a price range of Rs93-94 per share. ICICI Securities, IDBI Capital Markets & Securities Limited and SBI Capital Markets were the managers to the offer.
Ahead of the IPO, RailTel had raised Rs244 crore from 14 anchor investors. RailTel Corporation of India, a central public sector enterprise wholly-owned by the Government of India and under the administrative control of the Ministry of Railway, 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. RailTel also undertakes various ICT projects for the Indian Railways, central government and state governments.
In RailTel IPO share Allocation, the government is selling 87.15 million shares, or a 27.16% stake and plans to raise around Rs 819 crore. Religare Broking said in a note said: “The financial performance of the company has been tepid with revenue/PAT CAGR of 7.5% and 2.6% over FY18-20. However, it has consistently paid a dividend since FY08. On the valuation front, the company is valued at a PE of 21.4x FY20 EPS.