Shares of Rail Vikas Nigam Limited (RVNL) hit their upper circuit of 20 per cent at Rs 23.70 on the BSE on Monday after making a tepid debut last week.
The trading volumes jumped 1.5 times with a combined 90.5 million equity shares changing hands on the NSE and BSE till 3:03 pm. There were a combined pending buy orders for 2.24 million shares on both the exchanges, data shows.
The state-owned company’s stock price saw little change in the issue price on their stock market debut on Thursday. It ended at Rs 19.05 compared to IPO price of Rs 19 per share. RVNL’s initial public offer (IPO) had garnered 1.7 times subscription. Retail investors were allotted shares at Rs 18.5 apiece.
Most analysts have assigned 'subscribe' rating to the IPO, given its robust executable order book, growth prospects, government focus on rail infrastructure spend and attractive valuation.
In the recent past, two Indian Railway entities - IRCON International (IRCON) and RITES (RITES) - debuted at the bourses. Of these, only RITES is trading above the IPO price, while the former is trading at 16 per cent discount (as of Thursday's close) to the IPO price.
"RITES predominantly is a consulting arm of Indian Railways, while IRCON is normally into project execution and can execute projects across the spectrum. Though both IRCON and RITES are not perfect peers to RVNL but can be considered as proxy peers as they majorly cater to Indian Railways," wrote analysts at Choice Research in the IPO note. READ MORE HERE