RailTel Corporation Rises For Third Straight Session, Nearly Doubles From Issue Price

Shares of RailTel Corporation of India surged for the third straight day on Tuesday, March 2, tracking strong investor sentiment and also after winning an order worth Rs. 105.82 crores from the Ministry of Railways. According to a regulatory filing by the firm to the BSE, the order involves various upgradation and signaling work at some railway stations as well as replacement of mechanical signaling at some stations. On Tuesday, RailTel opened on the BSE at Rs 161, touching an intraday high of Rs 173.50, and an intraday low of Rs 156.05. (Also Read: RailTel Corporation Lists At Modest 11% Premium )

On February 26, shares of RailTel Corporation got listed for the first time on the boarses at a modest premium. The shares debuted at ₹ 104.60, up 11.28 per cent, on the BSE compared to the issue price of ₹ 94. As part of the government’s divestment programme, RailTel Corporation’s ₹ 819 crore initial public offer (IPO) was an offer for sale. (Also Read: RailTel Corporation’s IPO Opens For Bidding. Here Are Things To Know )

RailTel IPO was subscribed 42 times. In the retail category, the share offering was subscribed 16.78 times. It was 65.14 times in qualified institutional buyer segment, and 73.25 times in the non-institutional investor group. The public issue was open for three days between February 15 and February 18.

RailTel Corporation was incorporated in September 2000, and is a mini ratna (Category-I) central public sector enterprise. It is one of the largest neutral telecom infrastructure providers in the country. It has more than 55,000 route kilometers of optical fiber cable network and connects as many as 5,677 railway stations across the Indian Railway network. It focuses on providing broadband and VPN services.

As of 12:44 pm, shares of RailTel Corporation traded 16.13 per cent higher at Rs 169.15 on the BSE.