As Markets Fall, RailTel Stands Tall on Debut

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As Markets Fall, RailTel Stands Tall on Debut
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Railtel Corp Of India Ltd (NS: RAIT ) has made a strong debut on the stock market, listing at a premium of 16% to its issue price of Rs 94. The stock listed at Rs 109, and has now moved up, trading at Rs 123.65 at the time of this report, up over 30% from its issue price.

This strong listing comes in the backdrop of the broader markets undergoing a mass sell-off. Nifty is down 307 points or 2.04% and the BSE Sensex is down 1,089 points or 2.13% as markets got spooked by an increase in US bond yields.

RailTel’s IPO saw retail subscriptions of 16.78 times its original quota which beat records set by other railway IPOs like Indian Railway Catering And Tourism Corp (NS: INIR ), Indian Railway Finance Corp (NS: INID ), Ircon International Ltd (NS: IRCN ), and Rail Vikas Nigam Ltd (NS: RAIV ).

IRFC (Indian Railway Finance Corporation) made its debut towards the latter half of January and has struggled to even cross its issue price of Rs 26. It is trading at Rs 24.6 as of this report.

RailTel is one of the largest neutral telecom infrastructure providers in India with exclusive rights over 67,415 route kilometers, connecting 7,321 railway stations, for laying optical fiber cable. The company doesn’t have any debt on its books and is a consistent dividend payer.

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  • Aswin Murugaraja @Aswin Murugaraja
    what will be the target price
    Like 0
  • Aswin Murugaraja @Aswin Murugaraja
    what will be the target price
    Like 0
  • Aswin Murugaraja @Aswin Murugaraja
    what will be the target price of RAILTEL?
    Like 0

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