RailTel share price surges 20% post Friday’s premium listing as it goes 55% over IPO price

Telecom infrastructure provider RailTel Corporation of India (RailTel) had become the second state-run company under Indian Railways to go public this year last week and its share prices saw a surge of 20 percent on Monday. Being listed at Rs 109 per share on the National Stock Exchange (NSE) on Friday , RailTel had 11.28 percent listing premium from its issue price of Rs 93 to Rs 94 for every share. Now the price has reached Rs 145.65 a piece on the BSE. During its debut last week, RailTel had opened at Rs 104.6 apiece on the BSE. With the gain seen today, RailTel’s stock price is now up 55 percent over its Initial Public Offering (IPO) price. Signalling solid IPO hours, RailTel reported a subscription of 42.39 times in three days. Experts are noticing a robust earning growth in the future and a further escalation of 15 to 20 percent in the prices. Goldman Sachs India Fund and Nippon India Mutual Fund on Friday collectively bought 10.7 million equity shares of RailTel. These shares were bought through block deals on the NSE and were worth Rs 120 crore. While Goldman Sachs India Fund bought 3.71 million equity shares in RailTel at a rate of Rs 113.57 per share on the NSE, Nippon India Mutual Fund bought 5 million shares at Rs 109 per share. Also, data shows that the Nippon India Mutual Fund-Multi Cap Fund bought 2 million shares at the rate of Rs 116.13 for every share. RailTel is a Mini Ratna (Category-1) state-owned company and it is a debt free firm, thus serving to be quite promising in the long run. It is one of the largest neutral telecom infrastructure providers in India. When it opened for subscription on 16 February, it had received a 35 percent subscription within 40 minutes of the bidding.