The Rs 820-crore initial public offering (IPO) of RailTel Corporation of India has been subscribed 10.89 times so far on the final day of bidding.
The strong subscription was led by retail investors as their reserved portion was subscribed 13.26 times, and that of Non-Institutional Institutions 8.8 times. The portion set aside for qualified institutional buyers has been subscribed 8.5 times and the employees 2.19 times.
The information and communications technology infrastructure provider would be the sixth initial public offerings this year.
Most brokerages had advised subscribing to the issue on the back of robust fundamentals, better margins, diversified portfolio, and expectations of strong growth in the future.
The price band for the IPO was fixed at Rs 93-94 per share and the issue will close on February 18. The government will receive the money from the offer, not the company.
The offer size is excluding the anchor book as the company had already raised Rs 244 crore from anchor investors on Monday.
In FY20, RailTel had the highest net profit margin among key telecom companies and key IT/ICT companies in India, with a profit margin of 12.5 percent. The company expects strong growth in data center services in the future as the government plans to invest in smart cities, health, e-office projects, and education.
(Edited by : Ajay Vaishnav)
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