RailTel Corporation IPO subscribed over 11 times on final day of bidding process; employee portion sees 1.85 times interest

The RailTel Corporation IPO, worth Rs 820-crore has been subscribed over 11 times on the final day of the bidding process so far, reports said. According to a report by The Economic Times, by 1 pm, the issue received bids for 68,40,41,660 shares. This was 11.18 times the total issue size of 6,11,95,923 shares. The report further added that till the second day, the issue was subscribed 6.55 times with the retail quota getting bids for 10.55 times the quota limit. As per the report, the qualified institutional buyer quota was subscribed 2.97 times, the non-institutional investor category received bids 2.63 times the quota limit and the employee reservation category was subscribed 1.85 times. According to a report by Business Times, the minimum market lot size of the IPO is 155 shares, where an individual investor can apply for up to 13 lots. As per the company’s draft red herring prospectus (DRHP), the company will not receive any proceeds from the offer and the net proceeds are to be used for carrying out a disinvestment plan and to achieve the benefits of equity share listing on the stock exchanges. As reported earlier, the company had received 35 percent subscription within 40 minutes of the bidding process. RailTel gets 66 percent of its revenues from the telecom segment, while the remaining portion is derived from railways and other projects. As per reports, the share allocation is likely to be finalised on 23 February and subsequently, the listing may take place on 26 February.