Mumbai: The initial public offer of RailTel Corporation was fully subscribed on Tuesday, the first day of the bidding process.
The Rs 820-crore issue of the state-owned firm had received bids for 16.13 crore shares, which is 2.6 times of the total issue size of 6.12 crore shares.
The portion reserved for retail investors was subscribed five times while high networth individual (HNI) and employee categories were subscribed 75% and 81% respectively. The issue is an offer for sale by the government of 8.71 crore shares, which have been offered in the price band of Rs 93-Rs 94. “Strong demand from retail investors led to full subscription of RailTel IPO within the first few hours on day 1. Similar demand expected from HNI and QIB investors on day 2 and day 3,” said TK Pandey, secretary, Department of Investment and Public Asset Management, in a Twitter post Tuesday
