The Rs 820-crore RailTel Corporation initial public offer (IPO) was subscribed 42.4 times on the final day of the bidding process.
RailTel, one of the largest neutral telecom infrastructure providers in the country, received bids of 2,594,243,370 shares against the offered 61,157,360 equity shares.
The total size of the offer is Rs 819.24 crore at the upper price band of Rs 94 per share.
The demand for IPO was led by qualified institutional buyers, whose allotted shares in the issue were subscribed 65.1 times at the end of the bidding process. The retail portion of the IPO also received strong response as it was subscribed 16.8 times.
The retail category observed the highest subscription as compared to other IPOs in the segment like IRFC, IRCTC, IRCON, RVNL and RITES.
Speaking on the good response garnered by the investors from issue opening to closing, Puneet Chawla, chairman and managing director, RailTel Corporation of India said, “It is heartening to see the overwhelming response from investors across all categories. The overall 42.42 times oversubscription speaks volume of the faith the investors in QIB, NII and RII categories have shown in our company.”
“Infact our employee quota has also been oversubscribed which shows the enthusiasm of the RailTel family. I assure all investors that we will leave no stone unturned to honour their faith in us.”
The offer comprises 87,153,369 equity shares of face value of Rs 10 each and is a complete offer for sale by the government of India; therefore the company will not be directly receiving any proceeds from the same.
The minimum bid lot is of 155 equity shares, thereafter in multiples. The price band has been fixed at Rs 93 – Rs 94 per equity share.
RailTel offers a diversified portfolio of ICT services and solutions including MPLS-VPN, leased lines services, TPaaS, e-office and data centre services, large network hardware system integration, software and digital services to enterprises, public sector banks, defence organisations and educational institutions; operated through Tier III data centres located in Gurugram, Haryana, Secunderabad and Telangana to host and collocate critical applications for customers including Indian Railways.
RailTel is also empanelled with MeitY as a cloud service provider and offers services under the brand name of ‘RailCloud’. RailTel also provides broadband services to retail customers and MSMEs under the brand name of ‘RailWire.’