RailTel IPO: RailTel's IPO has opened for retail investors on February 16. A venture of Indian Railways, RailTel works primarily to build infrastructure related to information and communications technology.
As per Anil Singhvi, managing editor of Zee Business, it is advised to invest in IPO of RailTel. He said that investors can invest in this IPO for shortlisting gain or for a long time. Investors can get up to 25 per cent return on listing. Shares of this company can give investors up to 15% returns every year. He said that this is a small company and there will be no shortage of work with this company. There is no credit on this company.
RailTel caters to all the information and communication needs of the Railways. The company has a large optical fibre network. RailTel's shares may be allotted on February 23 and will appear in the Demat account on February 24. RailTel shares may be listed on February 26.
Prices rise in gray market
This IPO is seeing a surge in its gray market premium even before it opens. RailTel is trading at around Rs 141 in the gray market. That is, there is a jump of about 50 per cent in premium from the price band. Whereas on February 11, it was trading up by Rs 10-15. On February 9, it was trading above Rs 5-10.
This will be the price band
For the IPO of RailTel, the company has fixed the price band from Rs 93 to 94 per share. Retail investors will be able to invest in this stock between February 16 and 18. The company will issue approximately 8,71,53,369 shares through this IPO. The company has reserved 5 lakh shares for its employees. RailTel is preparing to raise about Rs 819.24 crore through this IPO.
What does RailTel do?
Railtel is a Mini Ratna (Category-I) central public sector enterprise. The PSU company submitted a draft red herring prospectus (DRHP) on September 29. The company provides telecom networks and infra services. It has separate system integrated services as well as exclusive rights on the optical fibre network laid along the railway line. Its optic fibre network is spread over 55,000 kms by as of June 30, 2020.
RailTel provides service at 5,677 railway stations. The company has helped launch an optic fibre-based connectivity project at the National Knowledge Network (NKN), Northeast.
