Shares of RailTel Corporation of India—the second state-run company under Indian Railways to go public this year—gained on market debut after investors piled into its initial public offering that concluded last week.
The stock of the government-owned telecom infrastructure company listed at Rs 109 apiece on the NSE, a 16% premium to its issue price of Rs 94, according to the data available on the exchanges.
The Rs 819-crore IPO by the Miniratna, fully owned by the central government, was subscribed 42.39 times on the final day. The company received bids for 259.4 crore shares against 6.12 crore on offer. The demand was led by non-institutional investors, followed by qualified institutional buyers and retail individual investors.
Prior to the IPO, the company had allotted 2.6 crore shares to 23 anchor investors at Rs 94 apiece. HDFC Life, Nippon Life India, Goldman Sachs India were among the top anchor investors.
RailTel will not receive any proceeds from the offer and all proceeds will go to the Government of India.
RailTel’s maiden offer followed Indian Railway Finance Corp Ltd. that listed on the exchanges in January. RailTel was the sixth railway company to go public. Previous offers from the railway stable are Ircon International Ltd., RITES Ltd., Rail Vikas Nigam Ltd., and Indian Railway Catering and Tourism Corp.