The ₹819 crore ($112 million) initial public offering (IPO) of state-run RailTel Corp received tremendous response from investors. And, now all investor’s eyes are waiting for the allotment date. The basis of the allotment of the IPO will be announced on February 23.
RailTel is a government-owned information and communications technology (ICT) infrastructure provider firm and India's largest neutral telecom infrastructure provider. This was the seventh initial public offering this year and second by the Ministry of Railways after it recently pared stake in Indian Railway Finance Corporation IPO— which listed at a 4% discount last month.
The IPO was subscribed 42 times and generated bids worth more than ₹259.42 crore against the offer size of 6.12 crore shares. The portion of the IPO reserved for retail investors was subscribed 16.78 times, whereas the qualified institutional buyer was subscribed 65.29 times.
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It would be worth watching if this high demand will reflect as listing gains on February 26, when the stock will hit the bourses. The shares were trading at a premium of ₹25-30 a piece in the grey market, ahead of the listing. However, the grey market is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.
RailTel IPO
Qualified Institutional Buyer
Non-institutional Investor
Retail Individual Investor
Employee
Total
Offer size
65.14x
73.25x
16.78x
3.35x
42.39x
However, after this stellar response that RailTel IPO has garnered, one thing is certain — not all investors will get the same amount of shares that they had subscribed for.
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Here’s how to check RailTel IPO allotment status:
If you subscribed for the RailTel IPO, you could check your allotment status by following these simple steps:
Click on ‘Select company’ and click on ‘RailTel’. It will only appear post allotment on February 23.
Once the company is selected, you will have to enter either your PAN detail, the application number, or client ID.
Enter the captcha and click ‘submit’.
Once you hit ‘submit’ the status of your application will appear on the screen. Please ensure the details that you provide are correct. It will show the number of shares that you subscribed to and the number of shares that have been allotted to you. SEE ALSO: 6 royal baby traditions Meghan Markle and Prince Harry won't be expected to follow
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