RailTel IPO Opens Today: Know it's GMP and whether you should Subscribe or Not?
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RailTel IPO Opens Today: Know it's GMP and whether you should Subscribe or Not?
RailTel IPO promises positive returns as it opens for Subscription today. Moreover, it is backed by the Government which gives it edge over other Broadband companies.
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The IPO of RailTel Corporation of India is now open for subscription i.e. from 16th February 2021. The company wants to raise around Rs 819 crores from this initial public offering. It is providing nearly 8.7 crore equity shares for subscription. Let's have a look at some of the key highlights of this IPO.
IPO Price |
Rs 93 per equity share |
Grey Market Premium or GMP(as on 16/02/21, 13:52) |
50% |
Lot Size |
155 Shares(Rs 14,570) |
Bidding Last Date |
18th February 2021 |
IPO Allotment Date |
23rd February 2021 |
IPO Listing Date |
26th February 2021 |
Current Retail Subscription Status |
1.53 Times |
The RailTel IPO is currently having a Grey Market Premium of 50%. Thus, grey marketers are willing to give Rs 186 per share of the original Rs 93 per share. It is expected that the GMP will go down in the remaining 2 days and might end up at 30%. Thus, investors who get lucky to get allotted will definitely make profit by selling at the initial minutes after listing. To get a superior buy/sell experience you can choose the best apps to trade & invest in the Stock Market.
The RailTel Corporation of India provides ICT(information and communications technology) infrastructure to the Indian Railways. It gets around 65% of its revenue from the telecom/broadband sector while the rest is from other railway services.
This company has many positives like debt-free balance sheet, regular dividends, pure valuation, and major role player in digital transformation of Indian Railways. Besides, it promises profitable margins and return ratios.
On the other hand, it has delivered less revenue, 7.5% PAT, and 2.5% CGR in FY 2018-20 so makes it questionable for long term investors. Besides, around 24% of its revenue comes from only 3 of its big customers.
Therefore, it is recommended to subscribe mainly for listing gain purposes. Besides, many Top Brokers have also given it a thumbs up for the same. People willing to take risks can go for long term investments. For great long term gains, you can invest in Government Securities using RBI’s Gilt Account. Their risk might be rewarded well, given the upcoming 5G services where RailTel can play an important hand.
Will you subscribe to this IPO or not? Do share your views in the comments below. You can also have a look at these related articles and threads on:
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Will apply. GMP is good only
raitel ipo good..bcoz gre market show +4000
As of now grey market premium is 15 to 20.
Gmp 11
Ipos never convert..such time waste.
yeh abhi kyu upar aaya
CMP:120
These days IPOs are getting exceptional response. IRFC had a normal listing. This is not cheap or a company with high CAGR, but has potential.
Looking at the recent IPOs and grey market premium, I’ll apply for few lots